Asked by Genelyn Silva on Jul 12, 2024
Verified
A positive externality exists when the actions of one party impose benefits on a second party.
Positive Externality
A benefit that affects a party who did not choose to incur that benefit.
- Identify the differences between positive and negative externalities.
Verified Answer
TZ
Tracy ZhangJul 18, 2024
Final Answer :
True
Explanation :
A positive externality occurs when the actions of an individual or firm result in benefits to others for which the others do not pay, such as when a homeowner's well-kept garden enhances the neighborhood's aesthetics.
Learning Objectives
- Identify the differences between positive and negative externalities.