Studied by 0 people
Looks like no one added any tags here yet for you.
define positive externality
is a benefit enjoyed by the third party as a result of an economic transaction
what should be higher on a benefit and cost diagram
MSB should be higher than MPB
what is the role of the government in this case
to promote policies and legislations that promote positive externalities so the economy can address market failure.
what is represented in the lined triangle
the net welfare gain or positive externality. sits between MSB MPB lines and above the lower eq
