{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

LS 15 - CHAPTER 15 Externalities Externalities in Our Lives...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Externalities CHAPTER 15 Externalities in Our Lives An externality is a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer. A negative externality imposes a cost and a positive externality creates a benefit. A production externality is associated with the process of supplying a good, while a consumption externality is associated with the process of consuming it. Externalities in Our Lives The four types of externality are Negative production externalities Positive production externalities Negative consumption externalities Positive consumption externalities
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon