Question

What is positive externality

Answer 1

Answer for Economics class : Positive externalities occur when there is both a social benefit and private benefit from a good or service.

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Answer 2

A positive externality is a positive effect felt by a third party which had nothing to do with the positive benefit. This can be felt equally on the consumer side or on the production side. There are a range of examples for this and although this has the connotation of being a benefit, legal arguments could break out over this, as both sides want to have a larger share of the benefits.