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What are two positive externalities



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User Badiboy
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Answer:

Education

Education provides a personal and public benefit to people. Individuals learn new skills and obtain knowledge by consuming products or services, such as workshops, college, tutorials and mobile applications that provide training. This makes education a positive externality of consumption.

Environment

The decisions businesses and consumers make in manufacturing and purchasing goods or services are externalities that affect the environment. For example, buying electric cars or recycling plastic, paper and glass products are actions consumers can take to help protect the environment, which provides social benefit. Third parties can enjoy a clean environment when businesses and customers create and use products responsibly.

Step-by-step explanation:

Positive Externalities are a type of market failure where an economic transaction causes not just one, but two or more parties to benefit. The classic example is having your car parked on the street and someone dents it. You can make them pay for fixing the dent, or have them pay you for creating an extra parking space. Externalities are side effects of an action that don't affect the doer of that action, but instead affect bystanders. Positive externalities are good outcomes for others; negative externalities are bad outcomes. A negative externality is when you impose some cost on others through your actions, but you don’t incur any of the cost yourself.

Positive externalities of production

Positive externalities of production are benefits for society that result from the production of a product or services. Businesses that manufacture the goods are responsible for these. An important characteristic of positive externalities of production is that even though a company does something that benefits society, they do not receive additional payment or compensation for this service.

Positive externalities of consumption

Positive externalities of consumption are benefits that society receives when a customer consumes a product or service. It's helpful for businesses to advertise the positive externalities when trying to sell a product. When people know that using a product serves both themselves and others, they may feel more motivated to purchase it.

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User Bluekeys
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