External benefits in consumption refer to benefits accruing to those a. who bought and consumed the product. b. who are selling the product to the consumers. c. who are consuming the product abroad. d. other than the ones who consumed the product.

Question

Business

Montana

2 July, 18:55

External benefits in consumption refer to benefits accruing to those a. who bought and consumed the product. b. who are selling the product to the consumers. c. who are consuming the product abroad. d. other than the ones who consumed the product.

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Answers (1)

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Liliana Moore · Answer 1

The correct answer is d) other than the ones who consumed the product.

Explanation:

An external benefit happens when producing or consuming a good or service, causes a benefit to a third party or person.

For example:

When a constructor builds a new block of apartments, the developer should build access roads to the new construction. The external benefit appears when these roads can be used by the residents of other buildings and the neighbors.