What are Externalized Costs?
External cost refers to the cost caused by external effects of production (mainly negative external effects). External cost refers to the economic loss that someone's behavior brings to others or society, and the actor does not compensate for the loss caused by his behavior.
External cost
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- Chinese name
- External cost
- Foreign name
- External Cost
- Explanation
- Costs due to external effects of production
- Relative
- Decision cost
- External cost refers to the cost caused by external effects of production (mainly negative external effects). External cost refers to the economic loss that someone's behavior brings to others or society, and the actor does not compensate for the loss caused by his behavior.
- For example, if a production enterprise causes certain damage to the environment during the production process, and it must pay a certain amount of cash or other forms of funds, the expenditure is an external cost.
- definition
- In the application of the simple majority voting system, external costs refer to the results of actions initiated by others that are not directly controlled by others, among the expected costs of human activities. Corresponding to this is the cost that an individual expects to directly incur as the activities of an organization in which he himself participates, which is called decision cost. External costs and decision-making costs together constitute the mutual costs of social dependence. The simple majority voting system makes the society rely on a voting system with the lowest mutual cost.