Negative Externality

A negative externality is a term used in economic theory. It applies, when the cost a consumer pays is smaller than the social costs of the product. The external costs are then passed on to society. A common example for a negative externality is pollution.

Negative Externality

A negative externality is a term used in economic theory. It applies, when the cost a consumer pays is smaller than the social costs of the product. The external costs are then passed on to society. A common example for a negative externality is pollution.

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