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How do positive externalities occur?A positive externality occurs when a benefit spills over. So, externalities occur when some of the costs or benefits of a transaction fall on someone other than the producer or the consumer.
What is a positive externality?A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction.
What is an example of a positive externality quizlet?An externality is benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service; Examples of a negative externality include pollution, while something such as a technology spillover is an example of a positive externality.
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