Marginal social cost, Managerial Economics

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Suppose that there is a fixed sum of money available to be spent on public projects, and that a large number of public projects have been evaluated using social cost-benefit analysis.  Assume that all projects are continuously variable in size.  It follows that the budget should be allocated in a manner which ensures the marginal social benefit from the last dollar spent on each project should equal its marginal social cost.

Required:

Define Marginal Social Cost.


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