Positive externalities
What Positive externalities means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Positive externalities
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Check what you remember
Read the wording for your board, then hide it and explain Positive externalities in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Benefits of innovation that extend beyond the private firm to society, causing the social benefits to exceed the private benefits.
External benefits to society that the market ignores.
Topics that use Positive externalities
- Market failure in society (Pearson Edexcel A-Level)
- Research and development (R&D) and innovation (Pearson Edexcel A-Level)
Related terms
- Market failure
- Competitive advantage
- Demerit goods
- Extension strategies
- Government intervention
- Information failure
- Information gaps
- Market power
Using Positive externalities in the exam
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