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Positive Externalities of Production as a Market Failure

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Jason Welker

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.

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posted by hawermout2y