What is a private cost of production? What is a social cost of production? When is the private cost of production equal to the social cost of production?
What will be an ideal response?
Private cost of production is the cost borne by the producer of a good or service. Social cost of production is the total cost of producing a good or service, including both the private cost and any external cost. The private cost and the social cost are equal when no externalities exist.
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Which of the following is the best example of the "traditional process"?
A) commercial bank mergers B) minimum age limits for the purchase of alcoholic beverages C) auctioning U.S. Treasury bills D) colleges and universities give admissions preferences to children of alumni
In 2009, the top 1 percent of income earners
a. made about 13 percent of all income. b. paid about 22 percent of all taxes. c. made over 2.5 times the percentage of all income earned by the lowest quintile. d. All of the above are correct.