Marginal social benefit equals
A) marginal external benefit.
B) marginal private benefit.
C) marginal private benefit minus marginal external benefit.
D) marginal private benefit plus marginal external benefit.
E) marginal external benefit minus marginal private benefit.

Question

Quizplus · Accepted Answer

Marginal social benefit includes both the private benefit that an individual receives from consuming a good or service and any external benefits that accrue to society as a whole. Therefore, it is equal to the sum of marginal private benefit and marginal external benefit.

Marginal Social Benefit Equals