Question

What is an externality

Answer 1

the picture below is an example of what it looks like

WHAT EXTERNALITY IS : externality is a economic cost or sometimes a benefit that is the´´by product´´ of the economic activity. the activity that is allacated outside of the system. the resources are likely to be misallocated when there is a externality.

the fact of existing outside the perceiving subject.

Answer 2

Externalities refer to situations when the effect of production or consumption of goods and services imposes costs or benefits on others that are not reflected in the prices charged for the goods and services being provided.