Skip to content

Course home

7.4.1 definition and calculation of social costs (SC) as the sum of private costs (PC) and external costs (EC)
x

The Three Types of Cost

The Three Types of Cost

Private cost (PC) is the cost of an activity that falls directly on the decision-maker, such as a firm's wages, energy, and materials. External cost (EC) is the spillover cost imposed on third parties who are not involved in the transaction, such as residents affected by pollution.

7.4.1 definition and calculation of social costs (SC) as the sum of private costs (PC) and external costs (EC) Lesson

  1. Intl A Level
  2. /Economics
  3. /7.4.1 definition and calculation of social costs (SC) as the sum of private costs (PC) and external costs (EC)

Step-by-step lessons on CIE Intl A Level Economics 7.4.1 definition and calculation of social costs (SC) as the sum of private costs (PC) and external costs (EC). Each one builds up to exam-style questions.