The marginal private benefit plus the marginal external benefit equals the ____ benefit.

Question

Quizplus · Accepted Answer

The marginal private benefit is the benefit received by the individual who consumes the good or service, while the marginal external benefit is the benefit received by individuals other than the consumer. When these two are added together, the result is the marginal social benefit, which represents the total benefit to society. Therefore, the correct answer is (C) marginal social benefit.

The Marginal Private Benefit Plus the Marginal External Benefit Equals