A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2012 · Q141 Mark
Which statement is correct?
AExternal cost equals social cost minus private cost.
BPrivate cost equals external cost minus social cost.
CSocial cost equals external cost minus private cost.
DSocial cost equals private cost minus external cost.
✓ Correct answer
A: External cost equals social cost minus private cost.
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