Figure 10-5
-Refer to Figure 10-5. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is
A)$720.
B)$735.
C)$2,205.
D)$405.

Question

Figure 10-5 
-Refer to Figure 10-5. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is
A)$720. 
B)$735. 
C)$2,205. 
D)$405.

Quizplus · Accepted Answer

The maximum total surplus is achieved when both private value and external benefits are considered, leading to the highest possible combined value, which is $2,205.

Figure 10-5 -Refer to Figure 10-5. Taking into Account Private Value and Private