how-does-the-marginal-social-benefit-curve-differ-from-the-traditional-demand-cu

Question

How does the marginal social benefit curve differ from the traditional demand curve in the presence of positive externalities?

Accepted Answer

The marginal social benefit curve is higher than the traditional demand curve because it includes external benefits.

Answer

The marginal social benefit curve is irrelevant in the presence of positive externalities.

Answer

The marginal social benefit curve is identical to the traditional demand curve.

Answer

The marginal social benefit curve is lower than the traditional demand curve because it excludes external benefits.