Question

Fire extinguishers exhibit positive externalities because, even though people buy them for their own use, they may prevent fire from damaging the property of others.

a. True
b. False

Answer 1

a. True

Step-by-step explanation:

Fire extinguishers can be considered an example of a positive externality because their use not only benefits the person using them but also has positive effects on others by preventing or reducing the damage caused by fires. This aligns with the idea of positive externalities, where the benefits spill over to third parties who are not directly involved in the transaction.