Externalities pt 1

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Uploaded by on Dec 1, 2010

Intro, graph of negative externality

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Education

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Standard YouTube License

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  • thank you so much!!

  • We might say that when the market clears at the inefficient price and qty... not taking into account the negative externality there is a deadweight "gain" to the economy... seen as the triangle between the demand curve and the MPC beyond the optimal social qty... the extra production is deadweight weighing on the resource allocation of the economy.

  • This was great! I am not sure why there are few views. Thanks for your help!

  • i hope you know i love you right now

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