A positive externality or spillover benefit (additional social benefit) occurs when

A positive externality or spillover benefit (additional social
benefit) occurs when a.product differentiation increases the
variety of products available to consumers. firms earn positive
economic profits. b.the benefits associated with a product exceed
those accruing to people who consume it. c.a firm does not bear all
of the costs of producing a good or service.

Answer

Option b

The positive or spill over benefits
are free or additional benefits that are received by the people who
consume the unit. As an example a scientific innovations in the
field of medicine would treat more than one disease would have
spillover benefits.

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