🎴 Flashcard Mode
Externalities
Card1 / 14
Mastered0
Review0
QuestionClick to flip
What is an externality?
AnswerClick to flip back
A
A cost or benefit that a person or firm imposes on others without compensation.
💡 Explanation:
Externalities are the costs or benefits that a person or firm imposes on others without compensation. This can occur when a person or firm produces a good or service that has a negative or positive impact on others, or when a person or firm consumes a good or service that has a negative or positive impact on others.