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    Yolanda Jesslina
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    Econ note

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    9 views6 pages

    Econ Note

    Uploaded by

    Yolanda Jesslina

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 6
    i po we _ Date =Ffdo Name Class _Medan af tae Consum peor) Externalities = _Leexternal costs Created by consumers beg: consumers smoking.In puoncpiaces, Neating Home clriving cars oy can use of focal fuels that pollute the atmosphere, PAYING ee music Cexampie demerit goods 1 as Src} Pot = Mse-curve hes: belove the MPB curve tat pols MP. 4.MsB.1s the extemna) cost. The | fascias (ree market. Qvernaliocees CesoUurces 3 c — Coe AM L, the ditterence between M that % Over produced (Crm to the production of theguod cmd tco \_much of it 15 produced cetatively to | what is. cociahy eptinurn (Qm> Boy J and Mse>%sb at Gm) The welfare loss of Negative consumption CHefaties ISC_and MSB curve for Lhe amount of output n- Gope) welt BamPce MSC welfare loss= Cbtcr€-e) - Cbt c+) AC Markee eq uniioniun (en / Pre 5 ((@) Send message ato > 56 up to Sa. | ——__ ao eon yc zeny ne — bier, ee ks BS Date aE Class @ Advertsing (campaigns) to persuade consurnen (Education & racing awarenéic> anti-cmoring, Tedluce use of goods based on fosnI fi 9 eg, Marvet based ponies ndivece taxes bor. ye + the pata ext eenal coh Vee MPCe MSC MAleOee, the MPc to Meet aw Bor the toe = External tost to demand cur increases trom Pm te @ & Name: Date :Thuréclay, 3 Noveroer 2022 _ Class Medan Fosiuve Production Extemarities 4s external benetits Crented by producers & €.9.:-0 fitm engages in research& development and Sueeeds In cleveloping O NeW tecnnology ena spreads throughout the economy =a pharmaeutical rompany develops a new medication that benerite Not Only its Users but aothoe cround them with Increased lite OPerctanry. e: Gemec is ies pad i) Frnt: A> exyernas at Denesied is Mrp=Msp a = Mec curve hes beiow the Merc curve. = Qe < Rope, thererore the Market UNdor~aliocates fesources HO the Production of the god _uhere t0o few resources are ANoceted +o its production and t00 litte OF iE Produced (MSR > MSe at Gm Welfare loss 0 positive production externanity Le the ditrerence between the MSB.4 Msc curve For the amount oF output that 1s Underproduced teiativeto the sceial optimurn Cope ~ Qu A s0crar optiroum, & Medan Correcting positive production externalities: @ direct government provision of goodskservices % @g.: research & development, tarming, governmem funds can SWF the Supply curve MPC-+to the MSC curve that's the Hightward Sinft (om MPC to the MSC curve so thatthe optimum quaneity of the good Qope will be pio dutta and price fans from Pm to Pope SSP al © Gransang a subsidy IF government provides q subsjdy toa firm per whit Of the good Produced thats equa) to the externa) venerit/ cpiliover benetit then cutve wil Mitt dqunwards UN It coincides with the MPC curve eViot veults 7 Mncteased quantity Produced At Rope and (cwers the price From Ym to Popt gaining alloccrve etticrerey tate Sulbsidiy~ spiltover benore & —— Name Class Date: Friday. 4 Novernber 7922 — z Medan ee! = Consumption Of educcttien benetes the who receives the educat butt 1n adatition gives rise to external benerits involvir ‘ ———__f10m 4 more produceive work-ore, less unienployment, fore = —— ane me rate, etc. Examipe: merit gooc z 7 = t APC= MSC —— ) the mse curve tie 1 Bees! CASS ( the diterence besween DyiRite OF a} te external benefits t he Social optim Gem Bege @ ) MSB= Msc where MGB: The quantity proctuced by the Matrket 15 Given by t pt 7 Qm, the marker under-allotates resouces to the p@duction ind +00 little OF 14 {5 produced Yelative-to the Socia The wertare tos the MSB& MSC curves F ¥ the amount Of output that is under prot TELALIVE tO tho soc Tat merece equboriam | AC Te spe ( ©) Send message & —— — 8S Date Class Medan {Correcting positive Con: (1) Leos CO Leaislation /Advereising (toeduate peopie/creatang awareness / persuctcting i = Mece Msc Pope = >< c @ birece government _provision— has whe effect oF INct easing supply for: Oviston. The new) suppy curve, S41 government promsion Intersects wheh-the ASB curve at thequantity Bop Where < S4 government provision i 7¥ 5 : Pat Fe ) Granting & subsidy 2 * Ge mre = Mi . z f_tnereases

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