Difference between revisions of "Negative externalities"
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| − | Negative | + | '''Negative externalities''' are costs imposed by activities on persons other than buyers. For example, a factory with a smokestack can have the negative externalities of pollution. People who do not buy output from that factory must unfairly bear the cost of the pollution. |
| − | Another term for negative externalities is "external diseconomies." | + | Another term for negative [[externalities]] is "external diseconomies." |
| − | [[ | + | [[Category:Economics]] |
Latest revision as of 16:32, July 13, 2016
Negative externalities are costs imposed by activities on persons other than buyers. For example, a factory with a smokestack can have the negative externalities of pollution. People who do not buy output from that factory must unfairly bear the cost of the pollution.
Another term for negative externalities is "external diseconomies."