When people experience a cost or benefit from a transaction that is external to that transaction, this is an Externality.
What is an externality?
This refers to benefits or costs that people who are not a party to a transaction get due to that transaction.
This benefit or cost is therefore external to that transaction and is therefore referred to as a market failure.
Find out more on externalities at https://brainly.com/question/1362529.
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