Jill plants flowers in her yard to supply a local florist He

Jill plants flowers in her yard to supply a local florist. Her neighbor enjoys the flowers. Therefore: Question 3 options: Jill should stop planting flowers because her neighbor does not pay for the benefit he gets. Jill should not plant flowers because their economic value is low and opportunity cost is high. Jill should plant fewer flowers because the external cost is greater than the external benefit. Jill is creating an external benefit for her neighbor.

Solution

Correct Answer:

Jill is creating an external benefit for her neighbor.

Explanation:

It is related to externalities. In this, situation, Jill is creating positive externalities to her neighbor.