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- DictionaryEx·ter·nal·i·ty/ˌekˌstərˈnalədē/
noun
- 1. a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.
- 2. the fact of existing outside the perceiving subject.
Externalities occur when producing or consuming a good cause an impact on third parties not directly related to the transaction. Externalities can either be positive or negative. They can also occur from production or consumption.
Jun 18, 2024 · An externality is a cost or benefit that is caused by one party but financially incurred or received by another. Externalities can be negative or positive. A...
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced components that are involved in either consumer or producer market transactions.
1. : the quality or state of being external or externalized. 2. : something that is external. 3. : a secondary or unintended consequence. pollution and other externalities of manufacturing. Examples of externality in a Sentence.
What is an Externality? An externality is a cost or benefit of an economic activity experienced by an unrelated third party. The external cost or benefit is not reflected in the final cost or benefit of a good or service.
Definition: externalities are side effects of an action that don't affect the doer of that action, but instead affect bystanders. Positive externalities are good outcomes for others; negative externalities are bad outcomes.
EXTERNALITY definition: 1. a positive or negative effect for someone else as a result of something that you do: 2. the…. Learn more.
