In economics, negative externalities are side-effects of economic activities. They arise somewhere during the lifecycle of products or services, are not considered by the market actors but have an influence on society’s welfare. When the negative effects (social costs) that are not taken into account at the market exceed the private gain, the market outcome does not maximise society’s welfare and thus externalities are one case of market failure.
Look inside the ebook
-
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X.