Question

4. Social costs are those costs
(A) not borne by the firms
(B) incurred by the society
(C) health hazards
(D) all of these​

Answer 1

Answer:

D is the right answer of this question

Answer 2

Social costs are those costs D. Al of the above

What is Social cost?

It is a cost to society due to production of commodity. Social cost is not born by the firm, but it is related to the working of the firm.

What does the social cost include?

• Firms are not required to pay for natural resources. So it is included under Social cost

        eg. river, lake, sea

• cost of the problems caused due to pollution

        eg. air pollution, noise pollution

• use of services provided for public uses

        eg. drainage system, roadways system

So social costs are incurred by the society and also used for the health hazards in favor of the society.