An example of an activity that creates a positive production externality is _
Understand the Problem
The question is asking for an example of an activity that generates a positive production externality, which refers to the benefits that are produced as a byproduct of an economic activity that affects third parties positively.
Answer
Research and development (R&D) is an example of a positive production externality.
A common example of an activity that creates a positive production externality is research and development (R&D).
Answer for screen readers
A common example of an activity that creates a positive production externality is research and development (R&D).
More Information
Research and development activities lead to new technologies and innovations that not only benefit the entity engaging in them but also have broader positive impacts on society by advancing knowledge and sparking further developments.
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