Question

If a good that generates positive externalities were produced and priced to take into account these spillover benefits, then its?

Answer 1

If a good that generates positive externalities were produced and priced to take into account these spillover benefits, then its: price and output would increase.

Definition of Positive Externality: this happens when the consumption or production of a decent causes a benefit to a 3rd party. For example: once you consume education you get a non-public benefit. But there also are benefits to the remainder of society.

When a positive externality is present, the market produces the socially optimal quantity of the great or service, since there's a benefit to society that's not captured by the individual.

When products that make positive externalities are produced, at the market equilibrium output, the social benefit Positive Externality generated by consuming the merchandise exceeds the private benefit. A. people that sleep in one country have the benefit of the assembly of an honest or service that happens in another country.

This occurs when the assembly of an honest person causes a 3rd party benefit. As a result there's a Positive Externality nonstop benefit where the assembly of an honest or service positively impacts a 3rd party. The benefit to the individual or firm is a smaller amount than the benefit to society.

learn more about Positive Externality: brainly.com/question/10743687

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