What is an externality?
Why might externalities lead a firm to discharge too much pollution into a river?
Congress has passed a law that limits the level of cotton dust within textile factories. Why might a textile firm allow too much cotton dust within it workplace?
An externality is a spill over from an economic activity. It is often referred to as a by-product of the market mechanism (supply equals demand). Negative externalities are often viewed as examples of market failure, in other words, the market mechanism creates a level of consumption / production that is higher than ...
This discusses the impact of externality on organizations