A Positive Externality occurs when:

Multiple Choice

• Firms do not have to bare the full costs of manufacturing a product and any costs imposed by that product on society, or the consumer.
• The price of the product is less than the value of the benefits received by the consumers and society.
• Consumers enjoy the product so much, they return and continue to purchase additional quantities.
• Something about the product makes it difficult to collect sales tax, which gives the consumer an unanticipated benefit