What is social cost of production
What is social cost of production?
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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.
The economic theorist most famed for developing marginal productivity theory was: (1) Thorstein Veblen. (2) Karl Marx. (3) Alfred Marshall. (4) John Bates Clark. (5) Vilfredo Pareto. Can someone ex
By the following choices in this illustrated graph, this worker would be happiest at point: (w) point a. (x) point b. (y) point c. (z) point d. Q : Backward Bending Labor Supplies The The graph for the supply of labor might be backward bending since: (w) the substitution effect surpasses the income effect at specific wages. (x) overtime workers receive pay for time and a half. (y) the substitution effect. (z) the income effect is m
The graph for the supply of labor might be backward bending since: (w) the substitution effect surpasses the income effect at specific wages. (x) overtime workers receive pay for time and a half. (y) the substitution effect. (z) the income effect is m
The income effect of a small varies in the wage rate dominates the substitution effect for this worker at point: (w) point a. (x) point b. (y) point c. (z) point d. Q : Backward bending supply curve for labor A backward bending supply curve for labor arises while: (w) firms wish to hire only a specific quantity of labor. (x) there is a change in the elasticity of resource supply. (y) workers prefer leisure over added income above several wage. (z) minimum
A backward bending supply curve for labor arises while: (w) firms wish to hire only a specific quantity of labor. (x) there is a change in the elasticity of resource supply. (y) workers prefer leisure over added income above several wage. (z) minimum
Most economists would categorize the bulk of the funds spent upon your college education like: (1) an investment in human capital. (2) financial capitalization. (3) consumption. (4) specific training. (5) personal saving. Please gu
When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o
Where managerial economics treat as a tool? Answer: Managerial economics is like a tool for decision making and forward planning.
As per most conventional theories of the labor market, the: (w) supply curve of labor is positively sloped since higher wages attract additional workers in the labor market. (x) firms should contend with increasing returns from additional employment.
Explain about the term survey techniques.
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