If the marginal social benefit of a good equals the marginal private benefit of the good, then the marginal external benefit of the good
A) is zero.
B) equals the marginal social benefit.
C) equals the marginal social cost.
D) equals the marginal private cost.

Question

Quizplus · Accepted Answer

The marginal external benefit is the difference between the marginal social benefit and the marginal private benefit. If they are equal, the marginal external benefit is zero.

If the Marginal Social Benefit of a Good Equals the Marginal