There are external benefits associated with the production of batteries.Without government regulation, the market will:
A)produce too many batteries.
B)price batteries at less than the marginal social cost.
C)price batteries at less than the marginal social benefit.
D)price batteries at greater than the marginal cost.

Question

Quizplus · Accepted Answer

External benefits mean that the social benefit is greater than the private benefit. Without regulation, the market will not account for these benefits, leading to a price lower than the marginal social benefit.

There Are External Benefits Associated with the Production of Batteries