True.
An externality is a cost or benefit incurred or received by a producer that is not incurred or received financially by that producer. Externalities can be both positive and negative, and they can occur as a result of the production or consumption of a good or service.
It is an additional cost or benefit imposed on a third party that is not included in the final price. Positive consumption externalities, positive production externalities, negative consumption externalities, and negative production externalities are the four major types of externalities. It can reduce the value of homes and cause problems for businesses in our communities.
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