what is the consequences of companies that pollute and the externalities
they create both private, public and social.....
Please explain this
External expenses incurred as a result of an economic transaction are called negative externalities. Side effects are another term for externalities and "external cost" is another term for negative externalities. In simple terms, a negative externality is something that causes indirect costs to the individual. Negative external effects such as air pollution and noise are often observed. Negative externalities can be countered by taxing goods and services that generate indirect costs. The government can use subsidies for goods and services that generate indirect benefits to encourage positive externalities.
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