An inframarginal externality is where_____.
A)there are spillover benefits and costs,both in total and on the margin.
B)there are spillover benefits and costs,but only in total.
C)there are no spillover benefits,but there are marginal costs
D)there are spillover benefits and costs,but they relate only to infrared technology

Question

Quizplus · Accepted Answer

An inframarginal externality is a spillover effect that affects the total benefit and cost of a market but not the marginal benefit and cost of individual participants. In other words, it does not affect the decision-making process of an individual, but it does affect the overall market outcome. Therefore, the correct option is (B)– there are spillover benefits and costs, but only in total.

An Inframarginal Externality Is Where_____