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yKpoI14uk [10]
1 year ago
7

The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is?

Business
1 answer:
mrs_skeptik [129]1 year ago
6 0

An externality is the benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service.

Externalities can either be positive or negative;

Positive externalities occur when there is a positive gain on both the private level and social level.

Negative externalities occur when the social costs outweigh the private costs. For example in cases of pollution where an industry may  decide to cut costs and increase profits by implementing new operations that are more harmful to the environment.

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