Question

Suppose that Sony's R&D investment in digital devices has increased profits by 20%. Is this a private or social benefit?

Short answer

The 20% increased profits is a personal benefit.

Step-by-step solution

Content Introduction

The benefits that a consumer of a product or service receives, or the benefits or procedures that a company invents and captures, are referred to as private benefit. On the other hand, social benefit is the total of private and external benefits.

Content Explanation

It is clear that Sony is profiting from the investment. As a result, the 20% rise in profits is a private gain. Sony's investment will be regarded a social benefit if it is not able to collect all of the benefit, perhaps because other corporations swiftly imitate and make close replacements.