If companies who took into account an externality want to supply more at any given price compared to the original supply,they must have addressed a:
A) positive externality.
B) negative externality.
C) network externality.
D) social externality.

Question

Quizplus · Accepted Answer

When a company takes into account a positive externality, it means that the supply creates additional benefits that are not reflected in the market price. By realizing the value of these benefits, the company may decide to increase its supply at any given price, as doing so will not only increase profits but also generate more positive externalities. Therefore, companies that want to supply more at any given price have likely addressed a positive externality.

If Companies Who Took into Account an Externality Want to Supply