Multiple Choice
An example of a positive externality is _____
A) pollution by firms because it affects people who are not directly involved with producing it.
B) a homeowner's maintenance of a beautiful lawn because it creates a benefit for neighbors.
C) monopoly creation.
D) driving a car that emits smoke.
E) cigarette smoking because this imposes an indirect cost on people around the smoker.
Correct Answer:
Verified
Correct Answer:
Verified
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