what is positive externality

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25-05-2015
Social Studies

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what is positive externality

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Maureen3idn Maureen3idn · Answer 1 · 2015-05-25T22:10:56-04:00

Maureen3idn Maureen3idn

25-05-2015

A positive externality is a positive effect felt by a third party which had nothing to do with the positive benefit. This can be felt equally on the consumer side or on the production side. There are a range of examples for this and although this has the connotation of being a benefit, legal arguments could break out over this, as both sides want to have a larger share of the benefits.

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