The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the
A) opportunity cost.
B) marginal external benefit.
C) marginal private benefit.
D) marginal social benefit.

Question

Quizplus · Accepted Answer

Marginal external benefit refers to the additional benefit that people other than the consumer of a good or service receive from the consumption of one more unit of that good or service. It captures the positive externalities or spillover effects to third parties not directly involved in the transaction.

The Benefit from an Additional Unit of a Good or Service