Who gains surplus when consumers in a market internalize a positive externality?
A)Consumers
B)Producers
C)Others affected by the externality
D)Both consumers and producers gain surplus when positive externalities are internalized.

Question

Quizplus · Accepted Answer

When positive externalities are internalized, both consumers and producers gain surplus. Consumers benefit from the positive externality by having increased satisfaction or utility, while producers benefit from the increased demand for their product. Other individuals or entities affected by the externality may also gain surplus, but this is not a direct result of internalizing the externality in the market.

Who Gains Surplus When Consumers in a Market Internalize a Positive