Socially Efficient & Inefficient Outcomes
View linked note
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/7
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
8 Terms
Market Equilibrium
Occurs where the supply and demand curves intersect, determining the market price and quantity.
Marginal Social Benefit (MSB)
The total benefit to society from consuming an additional unit of a good or service.
Marginal Social Cost (MSC)
The total cost to society of producing an additional unit of a good or service.
Social Efficiency
Achieved when MSB equals MSC, maximizing total societal welfare.
Negative Externalities
Costs imposed on third parties from production or consumption, leading to overproduction and inefficiency.
Positive Externalities
Benefits provided to third parties from production or consumption, leading to underproduction and inefficiency.
Deadweight Loss
The loss of economic efficiency when the equilibrium outcome is not socially optimal.
Agent Efficiency
PMB = PMC
