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The Marginal Social Benefit of a Good Is Equal To

Question 36

Multiple Choice

The marginal social benefit of a good is equal to:


A) the marginal private benefits the good provides plus any additional external or third-party benefits.
B) any additional external or third-party benefits the good provides.
C) the marginal private benefits the good provides.
D) the marginal private benefits the good provides less any additional external or third-party benefits.
E) the present value of its benefits divided by the present value of its cost.

Correct Answer:

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