Types Of Costs Flashcards
1
Q
External costs
A
Costs to third parties
2
Q
Private costs
A
Cost to someone involved in the business as a result of production or consumption
3
Q
Social costs
A
Cost to anyone in society
Total external and private costs
4
Q
What are some socials costs?
A
Environmental damage
Jobs lost in Bowton
More pollution in China
UK government lose income tax
5
Q
What are some social benefits?
A
Less pollution in Bowton
More jobs in China
Lower prices for customers
Increased dividends
