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Externalities happen when the costs or benefits of an action spill over to people who aren’t directly involved in it. Sometimes these side effects are positive (like a well-kept garden that boosts neighborhood property values), and sometimes they’re negative (like noise from a factory disturbing nea…
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Externalities happen when the costs or benefits of an action spill over to people who aren’t directly involved in it. Sometimes these side effects are positive (like a well-kept garden that boosts neighborhood property values), and sometimes they’re negative (like noise from a factory disturbing nearby residents).
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