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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In 1933, net private domestic investment was a minus $6.0 billion. This means that:
A. gross private domestic investment exceeded depreciation by $6.0 billion. B. the economy was expanding in that year. C. the production of 1933's GDP used up more capital goods than were produced in that year. D. the economy produced no capital goods at all in 1933.
What is the distinction between innovation and invention?
What will be an ideal response?