Positive externalities Flashcards
(4 cards)
1
Q
Positive Externalities
A
Third party benefits outside of the price mechanism
2
Q
Positive Consumption Externalities
A
Third party benefits outside of the price mechanism as a result of consumption.
For example, using a computer science degree to build website for companies increasing profit.
3
Q
Positive Production Externalities
A
Benefits affecting a third party outside of the price mechanism. For example, a bee keepers bees pollinating a farmers flowers ect..
4
Q
A
