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Feb 1, 2024: ch. 5 pt. 2 - Coggle Diagram

- - - - can be pos or neg (benefit or cost)
        
        that arises from an action that falls on someone other than the person or firm choosing the action
        
        for example: negative externality is the cost of breathing polluted air
        
        a firm is working on a marginal cost that is too low(?)
        
        neg externality occurs when producers impose costs on third parties who aren't directly involved
        
        for example: positive externality is the benefit of having everyone else vaccinated against covid
        
        pos externalities happen when ppl who are not directly involved in a transaction receive benefits without paying for them