A government chose to give approval to a road construction project because it created social benefits. When making its decision, it estimated private costs at $800m, private benefits at $800m and external costs at $150m. 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 $200m.
- DThere were no external benefits.