Individuals or firms engaging in private behavior that has broad social consequences are said to be creating

Question

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Externalities are costs or benefits that are not fully reflected in the market price. When individuals or firms engage in private behavior that affects others in a way that is not accounted for in the market, they are said to be creating externalities. These can be positive (benefits) or negative (costs), and they can have broad social consequences.

Individuals or Firms Engaging in Private Behavior That Has Broad