Which of the following is a source of a positive externality?
A)A factory that pollutes a river
B)A person who litters the street
C)A car that emits carbon monoxide
D)A company that engages in research and development
E)A product that contributes to the greenhouse effect

Question

Which of the following is a source of a positive externality?​
A)A factory that pollutes a river
B)A person who litters the street​
C)A car that emits carbon monoxide
D)A company that engages in research and development
E)A product that contributes to the greenhouse effect

Quizplus · Accepted Answer

A company that engages in research and development is a source of positive externality as it creates knowledge and technology that can benefit society as a whole. For example, a pharmaceutical company that develops a new drug not only benefits itself but also benefits society by improving health outcomes and lowering healthcare costs.

Which of the Following Is a Source of a Positive