The external benefit of a good
A) equals its producer surplus.
B) equals its total surplus.
C) is a benefit from the good falling on people who are not the consumers of the good.
D) equals its consumer surplus.

Question

Quizplus · Accepted Answer

External benefits refer to the positive effects or advantages that a good or service provides to individuals or groups who are not the direct consumers of that good or service. These are benefits that affect people other than the direct buyers or users, without them necessarily paying for the good or service.

The External Benefit of a Good