Marginal social costs
With marginal social costs (Engl. Marginal social cost) those are marginal costs referred incurred not only for the producers but, so in addition to throughout the economy external costs include.
External costs are the loss of resources by the state and other members of society without a contractual basis, which is caused by production. They arise, for example, from environmental use and pollution.
Significance for microeconomics
If the marginal social costs deviate from the private ones, the Pareto-optimal state does not arise in equilibrium , which is characterized by the fact that the marginal costs correspond to the prices. From a welfare economic point of view, an attempt should therefore be made to internalize the external costs. The consequences of this would be that one can algebraically calculate the economically sensible Pareto-optimal state with the resulting data.
Individual evidence
- ↑ J. Schumann, U. Meyer, W. Ströbele (1999), Fundamentals of the microeconomic theory , Springer, p. 271.