The social costs of business activity is considered to be when 1 pts O the priva

Question

The social costs of business activity is considered to be when 1 pts O the private costs of the business are included with the external costs. O All the costs that the business owner faces to produce goods and services. O The difference between the external and private costs. O Usually less than private costs. Question 14 1 pts When markets are regulated and the government intervenes and total surplus is lost.This is considered to be? O Market failure. Social failure. Public policy OGovernment failure.

Explanation / Answer

1) Solution: the private costs of the business are included with external costs

Explanation: Social Cost = Private Cost + External Cost

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2) Solution: Government failure

Explanation: Government failure occurs when their intervention leads to a more inefficient and wasteful allocation of resources

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