Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit
B) the economically efficient output
C) the price and the marginal social benefit
D) the size of the deadweight loss

Question

Quizplus · Accepted Answer

Individuals typically base their purchasing decisions on the price and their own marginal private benefit, not considering the external benefits to society.

Individuals Making Decisions About How Much to Purchase of a Product