Positive externalities occur when a transaction benefits parties not directly involved. Examples include property improvements and pollution reduction. Such events can have far-reaching effects, benefiting future generations. A positive externality is a type of benefit that generates some kind of additional benefit for the parties that weren’t directly involved in the original transaction. With this […]
Negative externalities occur when an individual or business decision passes on some of the cost to society. This can lead to social costs and undermine the market. Laws exist to minimize negative externalities, such as pollution, but companies should also take steps to minimize them. Excess production can also negatively affect competitors and lead to […]
