what is social cost and private cost..... plzz answer me first
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Social cost in economics may be distinguished from "private cost". ... Social cost is also considered to be the private cost plus externalities. Rational choice theory often assumes that individuals consider only the costs they themselves bear when making decisions, not the costs that may be borne by others
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The difference between these two is that private costs are only one part of overall social costs. Social costs take into account not only private costs, but also the externalities that come as a result of a given economic decision.
Private costs are the costs with which we are all familiar. These are the costs that we actually have to pay when we decide to do something. Let us take the example of owning and driving a car. Clearly, there are many private costs involved here. If I own and drive a car, I have to buy the car. Then I have to pay for the gas I use. I have to maintain the car. I have to buy insurance. I have to spend time in the car being unable to do much else other than driving. These are all private costs because I actually have to pay them and they are specific to me.
Private costs are the costs with which we are all familiar. These are the costs that we actually have to pay when we decide to do something. Let us take the example of owning and driving a car. Clearly, there are many private costs involved here. If I own and drive a car, I have to buy the car. Then I have to pay for the gas I use. I have to maintain the car. I have to buy insurance. I have to spend time in the car being unable to do much else other than driving. These are all private costs because I actually have to pay them and they are specific to me.
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