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No, an externality is when a cost is passed to a external party (not involved in the transaction), like air pollution or antibiotic resistance. Passing a cost t
by icebraining 6y ago
No, an externality is when a cost is passed to a external party (not involved in the transaction), like air pollution or antibiotic resistance. Passing a cost to the user is just a regular business transaction, like IKEA sending you a manual so you can build the furniture yourself.