A positive externality or spillover benefit (additional social benefit) occurs when: a. Product differentiation increases the variety of products available to consumers. b. Firms earn positive economic profits. c. The benefits associated with a product exceed those accruing to people who consume it. d. A firm does not bear all of the costs of producing a good or service.
Added by Maria L.
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It occurs when the benefits associated with a product exceed those accruing to people who consume it. Show more…
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