ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The marginal private cost curve is the firm’s supply curve. 3. Marginal social cost is the cost of producing an additional unit of a commodity that is paid by society. Marginal social cost includes both marginal external and marginal private cost.

Detailed explanation-2: -When we add external benefits to private benefits, we create a marginal social benefit curve. In the presence of a positive externality (with a constant marginal external benefit), this curve lies above the demand curve at all quantities.

Detailed explanation-3: -“Societal costs” as sustainability indicators… It can be defined as all the losses and expenses, direct and indirect, present and future, supported by third parties or by society as a whole because of the social, environmental and health impacts of production and consumption patterns[8].

Detailed explanation-4: -Marginal benefit represents the total benefit gained from the production or consumption of an extra unit of a good or service, while marginal cost reflects the cost implication to society through the production of additional goods or services.