Asked by
Karina Heinold
on Dec 11, 2024Verified
When production of a good provides external benefits, there will be
A) too few resources devoted to its production.
B) too many resources devoted to its production.
C) the optimal amount of resources devoted to its production.
D) abnormally high profits earned by producers of the good.
External Benefits
Positive effects experienced by individuals or groups who did not directly participate in the actions that produced those benefits.
Resources
Assets, materials, and inputs needed for the production of goods and services, including natural, human, and capital resources.
Production
The process of creating goods and services from various inputs like labor, technology, and raw materials.
- Gain familiarity with the principles behind resource allocation amidst external costs and benefits.
Verified Answer
LE
Learning Objectives
- Gain familiarity with the principles behind resource allocation amidst external costs and benefits.