--%>

What is social cost of production

What is social cost of production?

E

Expert

Verified

Social Cost:

Under the production of goods, costs will be incurred not only through the owners business but also through the society. Cost incurred through a society in terms of resources used within the production of a commodity is termed as social cost of production. This is the opportunity cost borne by an entire society or community. Social costs have not only the cost borne through the owners of a business or producers but also it is the cost passed on to the society. For illustration, production of exact commodities (rubber, chemical, petroleum and steel) causes environment pollution.

Pollution caused whereas producing a commodity inflicts a social cost on those residents who undergo ill health. Several industries leave wastes that the adjoining areas have to bear. A cost which is not borne by the firm except is incurred by others in the society is termed as external cost. Social cost contains external costs and privet cost (since firms are also apart of society). Therefore, social cost is the total cost of the society on account of production of a commodity. For illustration, the social cost of liquor sold through a firm includes the cost incurred through the firm as private cost and the cost as expenditure of additional police force to deal along with the drunken people and those other incidental expenses for the society.

   Related Questions in Managerial Economics

  • Q : Trent projection statistical method of

    Explain the Trent projection statistical method of Demand Forecasting.

  • Q : Most valuable human capital The most

    The most valuable human capital onto the given list would be possessed through a person who: (w) inherited a great deal of money. (x) invested large sums on the stock market. (y) had an advanced degree in music education. (z) specialized like a medica

  • Q : Value of the Marginal Product The value

    The value of marginal product of a variable resource is marginal physical product of it multiplied with: (w) the marginal revenue from the sale of its addition to output. (x) its cost. (y) the price of the product. (z) one.

  • Q : What are the types of price

    What are the types of price discrimination?

  • Q : Define the Econometric Methods Define

    Define the Econometric Methods.

  • Q : Formation of cartels Cheating on

    Cheating on agreements is a common problem along with firms which engage in the formation of: (1) predatory prices. (2) game theory groupings. (3) cartels. (4) pure competition. (5) asymmetric payoffs. Can someone explain/help me w

  • Q : Minimum supply to specified amounts of

    If the owner of a resource is paid in excess of the minimum needed to supply specified amounts of the resource, in that case the owner is the beneficiary of: (1) economic rents. (2) wage premiums. (3) excess profits. (4) surplus values. (5) capitaliza

  • Q : Introduction of the term Marginal

    Provide a brief introduction of the term Marginal Costing? And also write down the essential suppositions made by Marginal Costing?

  • Q : Competitive demand of employer A

    A competitive demand of employer for labor is: (1) derived from the demand that exists for the firm’s output. (2) inverted compared to regular demands. (3) shifted rightward by hikes in real wage rates. (4) positively sloped. (4) determined thro

  • Q : Costs of investing within human capital

    The costs of investing within human capital are probably to be borne by the employee when human capital a worker obtains “on the job” is: (1) general. (2) marginal. (3) precise. (4) generic. (5) specific.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1438786 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1935811
    Asked

    3,689

    Active Tutors

    1438786

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.