An externality is the impact of

Name: An externality is the impact of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An externality is the impact of one person's actions on the well-being of a bystander. The bystander may be negatively or positively affected by the action, but the point is that they are not directly involved in the decision-making process. This can lead to inefficiencies in the market or in society as a whole, as the external costs or benefits are not accounted for in the decision-making process.

An Externality Is the Impact of