Solved

John's Total Private Benefit Exceeds His Total Private Cost by the Greatest

Question 153

Multiple Choice

John's total private benefit exceeds his total private cost by the greatest amount when he carries out 10 units of an activity. Also, at 10 units, the marginal social benefit from John's activity exceeds its marginal social cost by the greatest amount. Based on this information, society's net benefit from John's activity:


A) is maximized when he carries out 10 units.
B) would increase if he carried out less than 10 units.
C) would increase if he carried out more than 10 units.
D) always moves in the same direction as John's net benefit from the activity.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents