A government chose to give approval to a private airport-construction project because it was socially beneficial. When reaching its decision, it worked out private costs of $700 m, private benefits of $800 m and external costs of $200 m. What must have been true about the external benefits of the project?
- AExternal benefits equalled private benefits.
- BExternal benefits exceeded external costs.
- CExternal benefits exceeded $100 m.
- DThere were no external benefits.