The type of externalities that the lumber industry have when more trees are planted is positive externalities in production.
- An externality is a cost or benefit a producer generates but does not personally bear or receive. An externality can result from the creation or consumption of a good or service and can be both positive and negative.
- Externalities are unpriced items that are a part of both consumer and producer market transactions.
- An advantage of creating or using a product is known as a positive externality. For instance, because people learn and develop skills for careers and their lives, education is a beneficial externality of school. Negative externalities, in contrast, are a cost of production or consumption.
Thus, lumber industry have positive externalities.
To learn more about externalities, refer: https://brainly.com/question/24258985
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