--%>
Assignment Help - homework help

Differentiate between Private Cost and Social Cost

Differentiate between Private Cost and Social Cost.

E

Expert

Verified

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.

   Related Questions in Managerial Economics

  • Q : Marginal Factor or Resource Costs The

    The words “marginal factor costs” or “marginal resource costs” taken as to the: (w) extra cost involved in producing an additional resource. (x) extra cost involved while producing an additional unit of a resou

    		•
  • Q : Highest income of supply of labor This

    This worker’s weekly income in this demonstrated figure would be the highest at: (w) point a. (x) point b. (y) point c. (z) point d. How can I solve my Economics problem? Please suggest me the correct answer.

    		•
  • Q : Regression-Correlation statistical

    Illustrates the Regression and Correlation statistical method of Demand Forecasting?

    		•
  • Q : Wage Rates and Opportunity Costs

    Reasons why workers are often paid more than they could make in their best alternative positions do not include: (1) human capital valued by many firms. (2) membership in a union along with a labor contract. (3) holding a minimum wage job when most unskilled workers a

    		•
  • Q : Limitation for using illustrations of

    Illustrations of economic capital would NOT contain: (i) an accountant's computer. (ii) 1,000 shares of stock within Google. (iii) a sixteen-pound sledgehammer. (iv) tires upon an eighteen-wheeler truck. (v) paper into the printer of a romance novelis

    		•
  • Q : Elasticity of demand for labor and type

    The relationship between the elasticity of demand for labor and the elasticity of demand for a specific type of output the labor produces is: (1) uniformly negative. (2) uniformly positive. (3) zero. (4) curvilinear. (5) highly variab

    		•
  • Q : How most goods and resources are

    In countries employing decentralized markets for nearly all decision making: (1) Private individuals select how most resources and goods are allocated. (2) Nonhuman resources should be individually owned. (3) Elaborate economic plans are planned and enforced by law. (

    		•
  • Q : Illustrates the real concept briefly

    Illustrates the real concept briefly?

    		•
  • Q : Elasticity of the supply possible

    When Chandra and Morgan are identically skilled and every can decide the number of hours she works as: (w) the elasticity of Morgan’s labor supply exceeds the elasticity of supply for Chandra’s labor at each possible quantity of labor. (x) Morgan’s i

    		•
  • Q : Explain the meaning of price Explain

    Explain the meaning of price.

    		•