If the marginal social benefit of a good equals the marginal private benefit of the good,then the marginal external benefit of the good
A)equals the marginal private cost.
B)is zero.
C)equals the marginal social cost.
D)equals the marginal social benefit.
E)is increasing.

Question

Quizplus · Accepted Answer

If the marginal social benefit equals the marginal private benefit, then there are no externalities present. Therefore, the marginal external benefit is zero.

If the Marginal Social Benefit of a Good Equals the Marginal