If an External Benefit Is Present in the Consumption of a Good

question 173

Multiple Choice

If an external benefit is present in the consumption of a good or service,then

• A) there can be no external cost.
• B) the marginal social benefit is greater than the marginal private benefit.
• C) the marginal social benefit is equal to the marginal private benefit.
• D) the marginal private benefit is equal to the marginal social benefit plus the marginal external benefit.
• E) the marginal external benefit is equal to the marginal private benefit minus the marginal social benefit.