Answered: When external benefits are significant:…

When external benefits are significant: market output is too low. social surplus is maximized. market output is too high. market output is at the efficient level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When external benefits are significant:

	market output is too low.
	social surplus is maximized.
	market output is too high.
	market output is at the efficient level.

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