What bend is added relies upon the kind of externality that is portrayed, however not whether it is positive or negative? Whenever an externalitv emerges on the creation side, there will be two inventory bends (private and social expense}. Nonetheless, on the off chance that the externalitv emerges on the utilization side, there will be two interest bends all things considered {private and social advantage]. This differentiation is fundamental with regards to s The chart shows the impacts of a negative externalitv, For instance, the steel business is thought to sell in a cutthroat market under the watchful eye of contamination control regulations were forced and implemented [for example under free enterprise}. The minimal private expense is not exactly the peripheral social or public expense by how much the outer expense, i,e., the expense of air contamination and water contamination, This is addressed by the upward distance between the two stockpile bends, It is expected that there are no outer advantages, so friendlv advantage approaches individual advantage