Arrange the following steps to illustrate the process of how positive externalities in production can lead to government intervention that benefits society: A) Government recognizes a positive externality exists, B) Producers receive subsidies or incentives, C) Increased production leads to greater societal benefits, D) Consumers benefit from improved goods or services.

When a positive externality in production is identified, the government first recognizes that this situation exists, which is the starting point of the process. For example, if a company invests in environmentally friendly practices, the community benefits from cleaner air. Next, to encourage more of this beneficial behavior, the government may provide subsidies or incentives to the producers, making it easier for them to continue their positive actions. As a result of these incentives, production increases, leading to greater societal benefits, such as improved health or enhanced quality of life. Finally, consumers enjoy these improvements through better goods and services, creating a win-win situation for both producers and the community.