Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
producers
B
consumers
C
third parties
D
competitors
Understanding the Answer
Let's break down why this is correct
Answer
Positive externalities in production occur when the actions of a producer create benefits for others who are not directly involved in the buying or selling of the product. For example, when a company invests in eco-friendly technology, it not only improves its own production process but also contributes to a cleaner environment. This cleaner air and reduced pollution can benefit the local community, even if they are not customers of the company. These benefits can lead to healthier residents and lower healthcare costs, showing how one business's efforts can positively impact society as a whole. Thus, positive externalities highlight the importance of considering the wider effects of production activities beyond just the immediate economic transaction.
Detailed Explanation
Third parties are people who are not part of the main deal. Other options are incorrect because Producers are the ones making the goods; Consumers buy the products.
Key Concepts
Positive Externalities
Production
Societal Welfare
Topic
Positive Externalities in Production
Difficulty
easy level question
Cognitive Level
understand
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