A good that provides external benefits to society has:
A) too few resources devoted to its production.
B) too many resources devoted to its production.
C) the optimal resources devoted to its production.
D) not provided profits to producers of the good.

Question

Quizplus · Accepted Answer

Goods that provide external benefits often lead to underproduction because the market does not fully capture their societal value, resulting in too few resources being devoted to their production.

A Good That Provides External Benefits to Society Has