private cost

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The cost of providing goods or services as it appears to the person or firm supplying them. This includes the cost of any factor services or inputs bought by the supplier, the value of work done, and the use of land, buildings, and equipment owned by the supplier. Private cost excludes any external harm caused to other people or the environment, such as noise or pollution, unless the supplier is legally obliged to pay for it. See also social cost.

Subjects: Economics.

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