The existence of a positive externality demonstrates that
A) prices are too low
B) there are third party costs
C) the source is costly to identify
D) the value society derives from a good may be greater than the value the person who buys it receives
E) benefits are included in price, but not quantity

Question

Quizplus · Accepted Answer

Positive externalality means that the benefits of a good or service extend beyond the direct buyer to others in society, indicating that the societal value is greater than the individual buyer's value.

The Existence of a Positive Externality Demonstrates That