What is the primary difference between private benefit and social benefit in the context of externalities?

• A. Private benefit includes external benefits, while social benefit includes only the benefits received by the individual.
• B. Private benefit is the benefit received by the individual, while social benefit includes both private benefits and external benefits.
• C. Private benefit is the benefit to society, while social benefit is the benefit to the individual.
• D. Private benefit and social benefit are identical in the context of externalities.

Answer: (B)