What Is Marginal Social Cost?
The amount by which a producer or consumer increases or decreases the social cost that results from the production or consumption of a unit of product. The sum of marginal private costs and marginal externality costs. That is, when an individual's decision takes into account the external influence of his behavior on society, the total cost is called marginal social cost.
Social marginal cost
Right!
- Chinese name
- Social marginal cost
- Foreign name
- Marginal social cost
- Definition
- Determination of the minimum amount of money to be paid for the value of resource consumption
- Features
- Tends to increase as its number increases
- The amount by which a producer or consumer increases or decreases the social cost that results from the production or consumption of a unit of product. The sum of marginal private costs and marginal externality costs. That is, when an individual's decision takes into account the external influence of his behavior on society, the total cost is called marginal social cost.
- Marginal social cost can be measured by the minimum amount of money that must be paid to compensate for the value of resources consumed to increase the production of a unit of certain goods or services.
- The social marginal cost of a good or service tends to increase as its quantity increases.