Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 exam•Written by the Fiveable Content Team • Last updated August 2025
Definition
The additional benefit to society as a whole from consuming or producing one additional unit of a good or service, including both private and external benefits.
AP course connection
Topic 6.1: 6.1 Socially Efficient and Inefficient Market Outcomes