Externalities by meking

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Slide Notes

Externalities

Published on Nov 22, 2015

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PRESENTATION OUTLINE

EXTERNALITIES

An unintended side effect that either benefits or harms a third party not involved in the activity that caused it.

Photo by orange.plastic

Negative externalities harm, cost, or inconvenience a third party.

Photo by ROSS HONG KONG

Positive externalities benefit someone who isn't involved in the activity.

Photo by Werner Kunz

These are seen as a failure because they aren't reflected in the market prices that buyers and sellers pay

Photo by kevin dooley

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