How to define the term "external costs"

There are many acceptable definitions of "external costs" but if you have the basic understanding of what it is then you should be fine. Firstly you know that it is a negative effect/impact by "costs" and from "external" you know that it is put onto a third party and can arise from high social costs. Therefore a suitable definition would be something along the lines of; External costs are the negative effects put onto a third party as a consequence of an economic activity.

FE
Answered by Fred E. Economics tutor

3349 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How many diagrams is it best to use in an extended essay?


Why do markets fail?


Discuss measures to reduce an imbalance in the current account?


How do I work out the different elasticites of demand?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences