Externalities

EXTERNALITIES

Introduction

When we talk about the externalities, in economics it is known as the cost or any harm and the benefit that is caused because of the external factors. These cost or benefits occur to the party which is not even engaged in such actions. So externalities are basically costs and benefits which an individual or a society bears even when it is not involved in any related activities.

Externality

As discussed above, any cost or benefit that occurs to the party even without the consent of that particular party is referred to as externalities. In economics, these external factors are considered as cost ...