The article on Externality, is talking about the two different types of externalities which are positive and negative. A positive externality is something that actually benefits the society as a whole; an example of this would be environmental cleanup. A negative externality is a lot more common, an example of this is pollution. There is a problem that is created from this where that companies do not fully measure the economic costs of their actions. Because they don’t subtract these costs from there revenues, so profit is inaccurately portrayed. This is where the government comes into play it is there basic goal to have companies internalize externality costs. For example if a company causes someone to get sick from there pollution then the company will be liable for the medical bills. So this way the company can more accurately compare revenues and expenses and decide if production is profitable. What do you think is this how it should be measured?