Differentiate between Private Cost and Social Cost
Differentiate between Private Cost and Social Cost.
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Private costs are the costs incurred through a firm whereas producing a commodity or service. Although social costs are those cost, that are incurred by the society in producing services or commodities. Social costs consist of private costs and external costs. Private costs comprise both explicit and implicit costs. Private costs do not include external costs. The concept of social cost allows understanding the social implication of the utilization of scarce resources in between the various sections of the society. The economic optimum is the yardstick in issues of private cost, but social optimum is the governing factor under the case of social cost.
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A cartel is more likely to succeed and survive when: (w) members respond to incentives to cheat. (x) fringe producers are not members. (y) total market demand is less elastic. (z) close substitute goods are simply developed. Discover Q & A Leading Solution Library Avail More Than 1440797 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1941371 Asked 3,689 Active Tutors 1440797 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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