What is the definition of an externality?

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The advantage gained by the purchaser in a transactionThe expense incurred by the seller in a market exchangeNone of the above choicesThe payment made to a company's outside advisorsThe unaddressed effect of an individual's actions on the welfare of others

Explanation

An externality refers to the benefit that a buyer receives in a market transaction. Other options either describe costs, payments unrelated to externalities, or the impact on third parties, which do not define an externality.