Question

Jill plants flowers in her yard to supply a local florist. Her neighbor enjoys the flowers. Therefore:a. Jill should stop planting flowers because her neighbor does not pay for the benefit he gets.b. Jill should not plant flowers because their economic value is low and opportunity cost is high.c. Jill should plant fewer flowers because the external cost is greater than the external benefit.d. Jill is creating an external benefit for her neighbor.

Answer 1

Answer:

D.Jill is creating an external benefit for her neighbor.

Step-by-step explanation:

An external benefit is also called positive externality. This is a benefit that a transaction or activity provides to someone who is not part of the transaction or activity.

In this scenario Jill is the one who engaged in the activity of planting flowers. But her neighbor who is not a part of the activity is the one enjoying/benefitting from the flowers.