What Is Msb and Msc

When a purely competitive industry is in a long-run equilibrium, quantity supplied equals quantity demanded (this is the profit maximizing quantity) AND therefore marginal social cost equals marginal social benefit (MSC = MSB), this is the allocatively efficient quantity.

What does MSC mean in economics?

Marginal social cost (MSC) is the total cost society pays for the production of another unit or for taking further action in the economy.

What is meant by MSC MPC MSB and MPB?

Graphically, this means that the marginal social cost (MSC) curve lies above the marginal private cost (MPC) curve by an amount equal to the marginal external cost (MEC) and the marginal private benefit (MPB) and marginal social benefit (MSB) are equivalent.