• Citations
  • Add to My List
  • Text Size

  • Entry
  • Entries A-Z

  • A spillover cost or benefit to a society, and sometimes to the rest of the world. Externality may be linked to the overallocation and underallocation of resources. A spillover cost or benefit affects a third or external (nonmarket) party. Private costs are borne by producers and consumers of a good because producers incur costs in the process of producing a good, which can be transferred to consumers who will derive satisfaction from the consumption of such a good.

    The social cost is the combination of the private cost and external or environmental cost. This identity makes it feasible to see that the external cost is the social-private cost differential. External benefits can analogously be understood as the social-private benefit differential.

    The market supply curve of a ...

    Looks like you do not have access to this content.


    Don’t know how to login?

    Click here for free trial login.

    • [0-9]
    • A
    • B
    • C
    • D
    • E
    • F
    • G
    • H
    • I
    • J
    • K
    • L
    • M
    • N
    • O
    • P
    • Q
    • R
    • S
    • T
    • U
    • V
    • W
    • X
    • Y
    • Z

    Back to Top

    Copy and paste the following HTML into your website