Melissa engages in an activity that influences the well-being of a bystander. In order for melissa’s activity to give rise to an externality, it must be the case that:.
Melissa fails to recognize the impact of her activity on the bystander's wellbeing. - the bystander fails to recognize the impact of Melissa's activity on his or her wellbeing. - the well-being of the bystander is adversely impacted by Melissa's activity. - Melissa neither pays nor receives any compensation for her activity. X(So that someone else gets/pays as a result of her activity.) the well-being of the bystander is adversely impacted by Melissa's activity.
