Question

Distinguish between private costs and social costs and understand market externalities and possible ways to correct them.

Short answer

Social marginal costs so when customer paid all private and external cost.

Step-by-step solution

Introduction

For such a provider of a commodity, product, or event, sector costs are the cost of obtaining equipment, staffs and students, as procuring fibers, and innumerable extra things. But that is easy from a commercial aspect, also it is vital to know overall standpoint of users.

Given Information

If one supplier may defray the particulate charges, enable that company‘s processes to add costs, the socioeconomic consequence expenses diverge than operating costs.

Explanation

• A peripheral trend for both the near run gets boosted by relating the percent natural impacts now to net social costs, and when the client purchased, administrative and personal prices would be included.
• Considering cost Ps and product Os, a confluence of both the contribution margin line the with curve occurs at higher Angles (thin blue strokes). ). This social optimal level of increase is denoted either by sign S.