Use the following to answer questions:
Figure: Softella
-(Figure: Softella) Refer to the figure. The figure shows a market for medicated tissues. Assume that the only use for these tissues is to wipe and clean one's hands, thus preventing germs from spreading to other people. What is the dollar amount of the external benefit (per box) that is created by the use of this product?
A) $24
B) $12
C) $8
D) $16

Question

Use the following to answer questions:
Figure: Softella 
-(Figure: Softella) Refer to the figure. The figure shows a market for medicated tissues. Assume that the only use for these tissues is to wipe and clean one's hands, thus preventing germs from spreading to other people. What is the dollar amount of the external benefit (per box) that is created by the use of this product?
A) $24 
B) $12 
C) $8 
D) $16

Quizplus · Accepted Answer

The external benefit is the difference between the social value and the private value. In this case, the external benefit per box is $8.

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