When negative externalities threaten Dart Container, it threatens back
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Negative externalities are an economics concept that is not often talked about, but incredibly intuitive. A negative externality is when an interaction between two parties harms a third party. If I buy new speakers from Sonos, Sonos gets money, and I get speakers. If I play them at all hours of the night, my neighbor gets less sleep. That’s a negative externality. It’s a trivial example, but according to economic theory, I should compensate my neighbor for the lost sleep. What does this have to do with consumer products? Many major consumer goods company’s products are priced artificially low because they don’t account for negative externalities. The company sells the product, captures the profit, and outsources the cost.
When negative externalities threaten Dart Container, it threatens back
When negative externalities threaten Dart…
When negative externalities threaten Dart Container, it threatens back
Negative externalities are an economics concept that is not often talked about, but incredibly intuitive. A negative externality is when an interaction between two parties harms a third party. If I buy new speakers from Sonos, Sonos gets money, and I get speakers. If I play them at all hours of the night, my neighbor gets less sleep. That’s a negative externality. It’s a trivial example, but according to economic theory, I should compensate my neighbor for the lost sleep. What does this have to do with consumer products? Many major consumer goods company’s products are priced artificially low because they don’t account for negative externalities. The company sells the product, captures the profit, and outsources the cost.