When would a positive externality occur
A)when Jack receives a benefit from John's consumption of a certain good
B)when Jack receives personal benefits from his own consumption of a certain good
C)when Jack's benefit exceeds John's benefit when they each consume the same good
D)when Jack's consumption is not beneficial to John

Question

Quizplus · Accepted Answer

A positive externality occurs when a third party receives a benefit from an economic transaction between the two parties. In this case, Jack is receiving a benefit from John's consumption of a certain good, which is a positive externality.

When Would a Positive Externality Occur