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Makiesha Jones
on Nov 25, 2024

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If a good that generates positive externalities was produced and priced to take into account these spillover benefits, then its

A) price and output would increase.
B) output would increase, but price would remain constant.
C) price would increase and output would decrease.
D) price would increase, but output would remain constant.

Positive Externalities

Benefits that result from a commercial activity or action but affect uninvolved third parties who did not choose to be involved in the transaction.

Spillover Benefits

Positive effects or advantages that result from a product, event, or activity, affecting those who are not directly involved.

Price

The total funds necessary to acquire a commodity, service, or asset.

  • Identify the distinctions between positive and negative externalities and their consequences on social welfare.
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Robert salazarNov 29, 2024
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