What is the: 1. Private Cost 2. External Cost 3. Social Cost

1. Private Cost is just the Cost of Doing Something to a Consumer or Firm. Cost a Firm Pays to make a Good is its Private Cost - Price Consumer pays to Buy the Good is their Private Cost 2. External Cost is caused by Externalities. Drop your Gum and the Council may Employ someone to Pick the Litter up. 3. Social Cost is Private Cost + External Cost. Full Cost that is Borne by Society.