Negative Externalities

Diseconomies
Diseconomies refer to costs resulting from an economic process that are not borne by those directly involved in the process, often leading to negative externalities. Pollution is a common example where the polluters do not bear the resultant costs.
External Diseconomies
External diseconomies refer to the adverse effects on third parties outside a transaction, which are not reflected in supply and demand, leading to inefficient resource allocation.

Accounting Terms Lexicon

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