What externalities arise from beautiful and ugly buildings and how do we deal with them? Beautiful buildings create a _________. A. positive production externality, which we deal with by placing heritage designations on properties of significant historical value. B. positive consumption externality, which we deal with by imposing higher property taxes on higher-valued properties C. positive consumption externality and there is no need to deal with this externality because owners have enough incentive to keep these buildings in good repair D. positive consumption externality, which we deal with by having competitions that encourage beautiful design and landscaping

Beautiful buildings create a positive consumption externality, which we deal with by having competitions that encourage beautiful design and landscaping. Positive consumption externality refers to a benefit that arises from consuming a product. Which in this case is are the building designs. This leads to creativity and passion arising within individuals which motivates them to compete in creating more beautiful designs.