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.

---

Definitions:

Implicit Memory

A type of memory that enables the use of objects or skills without conscious or intentional recollection of learning them.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences.

Classical Conditioning

An educational mechanism where two stimuli are repeatedly linked together; eventually, a response originally provoked by the second stimulus is induced by only the first stimulus.