what is a positive externality?

Question

Positive externalities occur when a service is a vailable without cost
positive externalities occur whenever there is a social benefit to a good or service
positive externalities occur whenever there is a private benefit to a good or service
positive externalities occur when there is both a social benefit and private benefit from a good or service

Answer 1

The correct answer is: positive externalities occur whenever there is a social benefit to a good or service. Positive externalities are the positive spillover effects that occur when the consumption or production of a good or service benefits a third party or the society as a whole. They are not directly accounted for by the market and result in an underallocation or underproduction of the good or service in question.