--%>
Assignment Help - homework help

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 : Spencer and Sieglemans definition of

    What is Spencer and Siegleman’s definition of Managerial economics?

    		•
  • Q : Most wage elastic at prevailing wages

    Demand is probable to be most wage elastic at prevailing wages for: (1) carpenters. (2) neurosurgeons. (3) computer programmers. (4) teenage employees of fast food restaurants. (5) economists. Can someone explain/h

    		•
  • Q : Find demand when Supply and Demand

    Suppose that the auto started began at the intersection of S0 and D0, and then Congress passed a main personal income tax cut. So, how will it affect the auto market?: (w) No change. (x) Demand shifts to D2. (y) Demand shifts to D

    		•
  • Q : Tutorial 7. The San Diego Zoo is

    7. The San Diego Zoo is contemplating a stuffed panda bear advertising promotion. Annualized sales data from local shops marketing the "Can't Bear it When You're Away" bear indicate that: Q = 50,000 - 1,000P where Q is Panda bear sales and P is price. A. How many pandas could the zoo sell at $30

    		•
  • Q : Illustrates the real concept briefly

    Illustrates the real concept briefly?

    		•
  • Q : Additional wage-elastic of demand A

    A firm’s demand for labor tends to be additional wage-elastic while: (1) the price elasticity of demand for output is greater. (2) substituting capital for labor is harder. (3) unskilled workers join unions. (4) labor costs are

    		•
  • Q : Implicit Labor Contracts If workers

    If workers accept lower wages in exchange for employer assurances of enhanced job security, employment agreements are illustrations of: (i) credentialism. (ii) comparable worth. (iii) specific training. (iv) an implicit labor contract. (v) human capital.

  • Q : Illustrates fundamental characters of

    Illustrates the fundamental characters of human existence given by Lionel Robbins?

    		•
  • Q : Decide to produce or to shut down in

    When, for a specified output level, an absolute or perfectly competitive firm's price is less in that case its average variable cost, so the firm: w) is earning a profit. x) must shut down. y) must increase output. z) must increase price.

    Q : Price Taker in Labor Supply Curves

    When a firm is a price taker in the labor market, in that case the: (w) wage is constant for any quantity of labor this would hire. (x) marginal resource cost of labor is constant for any quantity of labor this would hire. (y) wage equals the marginal

    		•