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Which term refers to the cost of one unit change, considering the impact on society?
Economics
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B. marginal social
The cost of one unit change refers to the additional cost incurred when one more unit of a good or service is produced or consumed. In economics, this is known as the marginal cost. When considering the impact on society, it is called marginal social cost.
- Average social cost is the total social cost divided by the number of units.
- Total social cost is the sum of all costs (private and external) for all units.
Therefore, the cost associated with a one-unit change is the marginal cost.
The final answer is .
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