If a Product Has an External Benefit, How Does Its

question 48

Multiple Choice

If a product has an external benefit, how does its marginal private benefit compare to its marginal social benefit?

• A) Marginal private benefit is greater than marginal social benefit.
• B) At low quantities, marginal private benefit is less than marginal social benefit, but at high quantities marginal private benefit is greater than marginal social benefit.
• C) At low quantities, marginal private benefit is greater than marginal social benefit, but at high quantities marginal private benefit is less than marginal social benefit.
• D) Marginal private benefit cannot be compared to marginal social benefit.
• E) Marginal private benefit is less than marginal social benefit.

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Definitions:

Social Interactions

Exchanges between individuals or groups, involving communication or cooperative behavior within social contexts.

Social Savvies

Individuals or entities adept at navigating and leveraging social media platforms for personal or business purposes.

Connect

To establish a relationship or link between people, systems, or devices.

Microblogs

Platforms or formats that allow for brief and frequent updates, often used for personal, informal communication or marketing.