Price Pf Pa Pb Pc 0 O A) Qd. B) Qb. C) Qa. S₂ = Marginal social cost 3) Refer to Figure above. The efficient output level is D) Qb - Qd. S₁ = Marginal private cost a Ķ d b C 0: Qd Qa Qb Demand Quantity

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Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.