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  • External Effect (Externality)

Marginal External Cost (MEC) (Definition)

The marginal external cost (MEC) is the cost associated with producing one additional unit of a good that is borne by parties other than the producer. It is the key cost component of a negative externality. The MEC is added to the marginal private cost (MPC) to calculate the marginal social cost (MSC).

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Social Science

Empirical Science

Science

Economics

Economy

Introduction to Microeconomics Course

CORE Econ

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