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
E) the size of the external benefit and the price

Question

Quizplus · Accepted Answer

Individuals making decisions about how much to purchase of a product typically consider the price of the product and the marginal private benefit they receive from consuming an additional unit of the product, not taking into account the external benefits or costs to society.

Individuals Making Decisions About How Much to Purchase of a Product