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  • Divergence between Private and Social Costs

  • Definition of External Effect (Externality)

External Cost (Negative Externality or External Diseconomy)

An external cost, also termed a negative externality or external diseconomy, is a cost that an economic activity inflicts upon a third party without any compensating payment. This uncompensated negative impact, such as pollution, is not considered by the person or firm making the economic decision.

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Economics

Economy

Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

CORE Econ

Social Science

Empirical Science

Science

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