krisanapong detraphiphat / Getty Images An externality is a cost or benefit related to the production or consumption of a good or service that affects third parties unrelated to the production or ...

Fact checked by Pete Rathburn Reviewed by David Kindness What Are Externalities? An externality is a cost or benefit related to the production or consumption of a good or service that affects third ...

As a result, there are differences between private returns or costs and the returns or costs to society as a whole. In the case of pollution—the traditional example of a negative externality—a ...

As a result, there are differences between private returns or costs and the returns or costs to society as a whole. In the case of pollution—the traditional example of a negative externality—a ...