For public goods,an external benefit occurs because

Name: For public goods,an external benefit occurs because
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Public goods provide total benefits that are greater than their costs but smaller than the personal benefit of each individual. Thus, individuals tend to underconsume public goods, leading to a market failure. This creates an external benefit, where those who are not directly consuming the good still receive benefits from its provision.

For Public Goods,an External Benefit Occurs Because