Another positive externality is the investment in education. When education is easy to access and affordable, society benefits as a whole. People with an education can command higher wages ...

In the case of pollution—the traditional example of a negative externality—a polluter makes decisions based only on the direct cost of and profit opportunity from production and does not consider the ...

Fact checked by Pete Rathburn Reviewed by David Kindness What Are Externalities? An externality is a cost or benefit related ...