Step-by-step explanation:
Externalities may be defined as the cost or the benefit that has an affect on the third party who did not incurred for that benefit or the cost. In other words, it is the consequences or the side effects of a commercial activity which affects any other party.
Externalities can be both positive as well as negative externalities.
The positive externalities for a new stadium for the Colombus Screw are --
- it can become a landmark overtime and it will generate pride in times to come
- any sports and athletics facilities bring many benefits to the neighbors
- many nearby households and firms which have no direct connection with the stadium can see a source of income because of the construction
And the negative externalities are --
- During a game event, there will be overcrowding, noise and pollution in the locality
- some external costs are the health problems and the inconvenience of those public who are affected by the game days