Question

What is the difference between private costs and social costs in economics?

Answer 1

private cost are paid by the firms or consumer and must be included in production and consumption decision

social cost include both private cost and any other external cost to society arising from the production or any consumption of a goods and services

Answer 2

Step-by-step explanation:

private costs are paid by firms or consumer and it must be included in production and consumption decisions while social costs are costs of both private costs and any other decision or consumption that are arising the community