Social costs are the sum of all the private individual costs.
Safety regulations don’t necessarily make a product safer although they almost always raise prices in part by restricting entry into the product’s market.
Because it costs resources to make a product safer it’s socially inefficient to have products that are too save.
Social costs are the sum of all the private individual costs.
Safety regulations don’t necessarily make a product safer although they almost always raise prices in part by restricting entry into the product’s market.
Because it costs resources to make a product safer it’s socially inefficient to have products that are too save.