Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without havingto carry her radio, get sand in her speakers, or buy new batteries). She's delighted. This isan example of
A) private property abuse
B) an externality cost to the person who has the radio
C) a negative externality enjoyed by Cindy
D) a positive externality enjoyed by Cindy
E) a public good

Question

Quizplus · Accepted Answer

This is an example of a positive externality enjoyed by Cindy because she benefits from the music without incurring any of the costs associated with bringing and maintaining a radio at the beach.

Cindy Discovers That When She Goes to the Beach, She