Explain the meaning of social cost with the help of an example. – InterviewSolution

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1.	Explain the meaning of social cost with the help of an example.
Answer» Social cost refers to the cost that the society has to bear on account of the production of a commodity. For example, a manufacturing firm produces chemical products, may pour industrial wastes in river water, without proper treatment, thus, saving private costs, but polluting the river water. So, the people taking bath in that river, or fishermen catching fishes from that river, would suffer. This is the social cost of producing chemical products. Several other examples are possible.

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