Which of the following represents the economic benefit of production when firms produce goods that create positive externalities?

Question

Quizplus · Accepted Answer

The economic benefit of production when firms produce goods that create positive externalities includes both the private benefits (benefits received by consumers of the good) and the external benefits (additional benefits to society that are not captured by the market). This is because positive externalities result in additional benefits to those not directly involved in the transaction, thus the total economic benefit is the sum of both private and external benefits.

Which of the Following Represents the Economic Benefit of Production