QuestionAugust 4, 2025

When production generates a negative externality, the true cost of production is the average cost of production. public cost of production. social cost of production. private cost of production.

When production generates a negative externality, the true cost of production is the average cost of production. public cost of production. social cost of production. private cost of production.
When production generates a negative externality, the true cost of production is the
average cost of production.
public cost of production.
social cost of production.
private cost of production.

Solution
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Answer

social cost of production. Explanation 1. Identify the impact of negative externality Negative externalities increase the cost to society beyond private costs. 2. Define social cost Social cost includes both private costs and external costs. 3. Determine true cost True cost accounts for all societal impacts, including externalities.

Explanation

1. Identify the impact of negative externality<br /> Negative externalities increase the cost to society beyond private costs.<br />2. Define social cost<br /> Social cost includes both private costs and external costs.<br />3. Determine true cost<br /> True cost accounts for all societal impacts, including externalities.
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