A firm develops a new production method. The firm's private benefit from the method is valued at £360,000. Rival firms and suppliers also learn from the method without paying for the research, and the social benefit is valued at £450,000. What is the external benefit of developing the new production method?
£90,000
£360,000
£450,000
£810,000
83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.