When private benefits are less than social benefits:
A)positive externalities are present in the market.
B)positive externalities are not present in the market.
C)negative externalities are not present in the market.
D)no externality of any kind is present in the market.

Question

Quizplus · Accepted Answer

When private benefits are less than social benefits, it indicates that there are positive externalities present. This means that the consumption or production of a good or service generates benefits for others who are not directly involved in the transaction.

When Private Benefits Are Less Than Social Benefits