Classify each statement as true or false.TrueFalse The social cost is the sum of private and external costsWhen the production of goods results in pollution, private, and social costs are the same.Private costs are the costs that the firm is not obligated to disclose to the public.The terms "social cost" and "external cost" are synonyms.When the production of good results in pollution, private and social costs are different.Pollution is an example of an external cost.Wages are an example of an external cost.

Cost: It is the monetary value spent by a company for producing something.Here, True statements are 1, 5, and 6. The remaining statements 2, 3, 4, 7 are false. Social cost= Private + External cost.

Answered: Classify each statement as true or…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Classify each statement as true or false.

True	False

The social cost is the sum of private and external costs
When the production of goods results in pollution, private, and social costs are the same.
Private costs are the costs that the firm is not obligated to disclose to the public.
The terms "social cost" and "external cost" are synonyms.
When the production of good results in pollution, private and social costs are different.
Pollution is an example of an external cost.
Wages are an example of an external cost.

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