EXTERNALITIES Flashcards
1
Q
PRIVATE COSTS
A
A private cost is the cost of doing something to either a consumer or a firm
2
Q
EXTERNAL COSTS
A
Caused by externalities, e.g if you dropped a crisp packet it would be an external cost to the coucil as they would pay people to pick them up.
3
Q
SOCIAL COSTS
A
The full costs borne by society of a good or service
