Which of the following statements is true?
A) The social benefit of an action is equal to the private benefit minus any negative externalities.
B) Society maximizes its net benefit as long as marginal social benefit is greater than marginal social cost.
C) Society maximizes its net benefit by operating where total social benefit exceeds total social cost by the greatest amount.
D) All of the above.

Question

Quizplus · Accepted Answer

Society maximizes its net benefit by operating where the difference between total social benefit and total social cost is greatest, which is the point of maximum net benefit.

Which of the Following Statements Is True