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Positive externalities
benefits which affect third parties outside the price mechanism
Positive consumption externalities
benefits that affect third parties as a result of a consumption of a good
Positive consumption externalities examples
University students getting education can help people in society get healthcare(outside price mechanism)
Vaccinations as you benefit others because they won’t catch the illness from you.
Positive production externalities
benefits that affect third parties as a result of the production of a good
Positive production externalities examples
When a bee keepers produce bees for honey it helps pollenate nearby crops which help farmers
Transport helps people get to work faster which benefits the companies they work for
