The True Cost of Smoking

Photo by Anastasia Vityukova on Unsplash

In economics, an “externality” refers to the cost (negative externality) or benefit (positive externality) incurred or received by a third party, who has no control over the creation of that cost or benefit.

The “go to” example used to explain negative externalities is pollution. A company that pollutes receives the economic benefits of their polluting activity, while the rest of society bears the cost of the…

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Ben Le Fort

Ben Le Fort

Making of a Millionaire editor | Personal finance writer | Author of “The Financial Freedom Equation” Subscribe to the MOAM newsletter: https://bit.ly/3l9m7ob