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What Is External Economy?

2010/7/21 20:04:00 46

External Economy

External economy: it refers to an economic activity of a family or manufacturer that brings benefits to other families or manufacturers. Obviously, the private benefits of this economic activity are less than the social benefits.

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What Is External Diseconomy?

External diseconomy: refers to the harm that a family or a manufacturer's economic activity can't compensate for other families or manufacturers. Obviously, the private interest of this economic activity is greater than that of the society.