ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Marginal social cost (MSC) refers to the cost that society pays as a result of the production of additional units or utilization of a good or service. The total costs of producing an additional unit are not only undertaken by the producer but also by society.

Detailed explanation-2: -Marginal cost is the opportunity cost of producing one more unit of a good or service. The marginal cost is measured as the value of the best alternative forgone to get one more unit of the good or service. The marginal cost increases as more of the good is produced-the principle of increasing marginal cost.

Detailed explanation-3: -What Does Marginal Social Cost Mean? Marginal social cost (MSC) is the total cost society pays for the production of another unit or for taking further action in the economy.

Detailed explanation-4: -Marginal social cost (MSC) is the change in society’s total cost brought about by the production of an additional unit of a good or service. It includes both marginal private cost and marginal external cost. For example, suppose it costs a producer $50 to produce an additional unit of a good.

Detailed explanation-5: -(y) Social costs means costs estimated from the viewpoint of society, rather than individual stakeholders. Social cost represents the total burden imposed on the economy; it is the sum of all opportunity costs incurred associated with taking actions.