An external benefit is a benefit that
A) experiences increasing marginal returns.
B) is greatest at the equilibrium point.
C) always equals external cost.
D) is enjoyed by someone other than the buyer of a good.

Question

Quizplus · Accepted Answer

External benefits refer to positive effects of a transaction or activity on third parties who are not directly involved in the transaction. These are benefits enjoyed by individuals or groups who did not purchase or consume the good or service that generated the benefit.

An External Benefit Is a Benefit That