The classic example of a detrimental externality is

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Pollution is a classic example of a detrimental externality because it is a negative consequence that affects third parties who are not involved in the production or consumption of a product or service. For example, a factory that emits harmful pollutants into the air or water may reap the benefits of producing its goods or services, but others in the surrounding area may suffer from health problems or reduced quality of life as a result.

The Classic Example of a Detrimental Externality Is