An external benefit is a(n):
A)example of a negative externality.
B)benefit that accrues to domestic firms due to the actions of foreign (external) firms.
C)benefit that accrues to foreign (external) firms due to the actions of domestic firms.
D)benefit that individuals or firms confer on others without receiving compensation.

Question

Quizplus · Accepted Answer

An external benefit is a benefit that individuals or firms confer on others without receiving compensation. It is a type of positive externality where the benefits spill over onto third parties who are not directly involved in the transaction.

An External Benefit Is A(n)