Beneficial externalities would be removed if the recipients of the benefit paid the producer of the externality.

Name: Beneficial externalities would be removed if the recipients of the benefit paid the producer of the externality.
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Question

Quizplus · Accepted Answer

Beneficial externalities occur when a third party benefits from a transaction they are not directly involved in. If the recipients of the benefit compensate the producer, it internalizes the externality, aligning private and social benefits, thus removing the externality.

Beneficial Externalities Would Be Removed If the Recipients of the Benefit