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Externalities are costs of doing business that you the business don't directly pay. Their point seems pretty straight forward to me. What part of it is confusin
by austhrow743 6y ago
Externalities are costs of doing business that you the business don't directly pay. Their point seems pretty straight forward to me. What part of it is confusing?
- core-questions 6y agoCould you maybe just restate it? How are stolen items costs that businesses "don't directly pay"?
- CharlesHorsey 6y agoOP said: > "Shrink" is of course accounted for in the economics, but not worker and customer safety, which is externalized as violence and loss in the communities. So they're saying that the business does pay the cost of stolen items ("shrink") but not the cost of the violence, which is borne by its victims.
- austhrow743 6y agoThe stolen items are costs. The violence to staff and customers are externalities.