Purchase Solution

Social costs

Not what you're looking for?

Ask Custom Question

Please help with the following problems.

Why is environmental cost shifted to the consumer?
How much are you willing to pay to live without pollution?

Purchase this Solution
Solution Summary

Social costs are investigated in this problem. It answers questions involving the environmental cost shifted to the consumer and how much someone may be willing to pay to live without pollution.

Solution Preview

Social costs include costs of pollution, depletion of natural resources or degradation of the environment. As these costs are often not included in prices paid by consumers and producers they are borne by society as a whole. The failure to consider these "external costs" in private decision-making may be corrected through the use of economic instruments, by including them in the prices of goods and services, so as to convey more accurate market signals. Economic instruments are therefore a means of implementing the "Polluter Pays Principle"

More recently, there has been a shift by corporations and governments towards viewing the environment as a perishable resource which needs to be managed for prolonged use - be that use commercial or social. There has also been a realization that ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Responsible Business in the 21st Century

    Financial indicators to measure social and environmental costs are determined.

  • Externalities

    The first unit costs $4, the second one costs $5, etc.

  • The market equilibrium

    These social costs and benefits must be the true social costs and benefits otherwise the market equilibrium will not be economically efficient. The market equilibrium is assessed.

  • opportunity costs, accounting costs and economics costs

    Solving the problem: Sports training: Opportunity costs will be: - less social time - $25,000 in lost wages Economic costs: You have to discount food and rent since you have to pay that no matter what.

  • Social Responsibility vs. Profit

    Many factors are involved in assessing CSR like a reduction in taxes, production costs, opportunity costs, investment costs, material costs, and overhead costs.

  • Gross Domestic Product

    Should these costs be reflected GDP? If so, why? I thought the answer would be no and that social costs are added and become the total net costs. I am not sure if the costs should be reflected in the GDP.

  • External Costs with Fixed-Production Technology

    social costs of production are greater than that of the private cost function, we see the occurrence of a negative externality of production Such externalities are a result of firms externalising their costs onto a third party in order to reduce their

  • appropriate derivation of a cost

    Explain the impact of eliminating or cutting down the following costs: Transportation for social workers : If transportation for social workers is reduced the social workers may have to use their personal transport or use public transport.

  • I need to cut $94,000 in cost. Help prioritize those cuts that can be made without impacting the operation or quality care of the organization.

    $42,000 Community Mental Health Services Salaries (two social workers) $46,000 Outpatient mental health treatment Salaries: Psychiatrist $86,000 ELIMINATING ALL DISCRETIONARY COSTS IS NOT NEED It is proposed that the two social workers

  • Marginal Social Costs

    The marginal social costs and abatement costs of a certain type of air pollution for a factory are examined.

View More Related Solutions