Externalities are costs that don't show up as part of the market price for a product.

Name: Externalities are costs that don't show up as part of the market price for a product.
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Question

Quizplus · Accepted Answer

Externalities are costs or benefits that affect a party who did not choose to incur that cost or benefit. They are not reflected in the market price of goods or services, leading to market failure if not corrected by government intervention.

Externalities Are Costs That Don't Show Up as Part of the Market