Briefly discuss the private cost of advertising How we can-00560
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vu cs401 Computer Architecture and Assembly Language Programming.
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vu cs401 Mid Term Solved Past Paper No. 3.
Question 1: Briefly discuss the private cost of advertising. How we can calculate the marginal social cost?
Answer:
Private Cost Of Advertising
The private cost of advertising is the cost incurred by firm in making the advertisement i.e newspaper adds, tv commercials etc. The firms do not take into account the nuisance faced by people due to these advertisements otherwise the firms would do less advertisement.
Marginal Social Cost
Marginal social cost is not a monetary based cost. It is the cost borne by the society as a whole. It is the cost of consumption of one next unit.
