When the benefits to society of using a product exceed benefits to the user,
A)the product should be strictly regulated
B)the product should be taxed
C)the product provides a positive externality
D)the product is overproduced at the privately determined equilibrium
E)in time the product will not be produced

Question

Quizplus · Accepted Answer

When the benefits to society of using a product exceed benefits to the user, it means that the use of the product creates positive externalities which benefit society at large. These positive externalities can include things like cleaner air or improved public health. In this case, the best choice is C, as it recognizes that the product provides a positive externality.

When the Benefits to Society of Using a Product Exceed