What are good examples of a positive production externality?

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Expert Solution

Answer: A positive production externality or positive externality means any benefir received or enjoyed by the third party because of an ecomomic or commercial transaction between two parties. Some examples of postive externality are as follows:-

• A person who gets vaccinated minimizes his chances or getting a disease as well as of the people near him. Thus it leads to a positive externality due to one person’s vaccination.

• Building of schools and colleges in rural are increases education. Due to such opening of schools and colleges, it increases the jibs in that area of teachers and professionals.

• Due to production of hybrid cars the affect of pollution on environment has significantly decreased and thus it lead to positive externality.

• If a particular cuty or town imbibes healthy habits like cleaning, theowing garbage in the bins and driving within the speed limit then it helps people from getting ill and prevents accidents.

Rahul Sunny answered 1 year ago

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