Refer to Figure 10-5. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is

A) $720.
B) $735.
C) $2,205.
D) $405.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefits to society from a market transaction.

Private Value

The individual valuation of a good or service to a particular consumer or producer, not taking into account external effects or social welfare.

External Benefits

Positive effects of a product or service on individuals or entities who are not directly involved in the transaction or production of the product or service.