An external benefit is a benefit that
A) is enjoyed by someone other than the buyer of a good.
B) always equals external cost.
C) experiences increasing marginal returns.
D) is greatest at the equilibrium point.

Question

Quizplus · Accepted Answer

An external benefit is a benefit that affects someone who did not choose to incur that benefit, typically someone other than the buyer or seller in a transaction.

An External Benefit Is a Benefit That