how can you identify an externality 
companies must be mindful of their entire production process when assessing production externalities this includes not only implications of the final product but residual impacts of byproducts disposal of items not used and how antiquated equipment is handled this also includes projecting outcomes of items yet to occur such as waste yet to be properly disposed of consumers can identify consumption externalities by being mindful of the inputs and outputs that go beyond what they are attempting to achieve consider an example of an individual consuming alcohol a consumer must be mindful that excessive drinking may lead to noise pollution an unsafe environment or adverse health effects 