External costs and external benefits are known as an externalities. An externality is an expense and benefit a producer generates but does not personally bear or receive. So the correct option is (C).
An externality can result from the creation or consumption of an item or service and can be both positive and negative. Both private (to a person or an organisation) and societal (affecting society as a whole) costs and benefits are possible. Externalities that are caused by the environment naturally typically have to do with public health and natural resources.When a thing or service is produced or consumed in an economy, externalities happen when those actions have an effect on an entity that is not closely engaged in those activities.
Therefore correct option is (C).
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