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Positive Externalities of Production as a Market Failure

Sometimes the production of a good creates external benefits for a third party, but not often! Businesses do not want to externalize benefits, because this means they aren't making MONEY from their goods and services! However, sometimes positive production externalities arise. This lesson will explain these situations, give examples, and introduce some of the possible government solutions. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

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