External benefits in consumption refer to benefits accruing to:
A) Those who are selling the product to the consumers
B) Those who bought and consumed the product
C) Those other than the ones who consumed the product
D) Those who are consuming the product abroad

Question

Quizplus · Accepted Answer

External benefits in consumption refer to benefits that are enjoyed by individuals other than those who consume the product. These benefits are not reflected in the market price of the product and are therefore not taken into account by consumers when making a decision to purchase the product. For example, if someone decides to buy an electric car instead of a gas-powered car, they may experience lower costs from improved air quality, reduced traffic congestion, and reduced CO2 emissions. These benefits, which are enjoyed by others in the community, are considered external benefits.

External Benefits in Consumption Refer to Benefits Accruing To