Asked by

Karina Heinold
on Dec 11, 2024

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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.
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Luisa EstradaDec 14, 2024
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