Externalities

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4 Terms

1
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negative externality in consumption. A = MPC = MSC , B = MPB, C = MSB, D = private optimum, E = social optimum, F = Q*, G= Q1, H= P1, I=P*

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2
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positive externally in consumption, A = MPC=MSC, B= MPB, C=MSB, D= private optimum, E= social optimum, F=Q1, G=Q*, H=P1, I=P*

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3
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postive externality in production, A=MPB=MSB, B=MPC, C=MS, D=private optimum, E= social optimum, F=Q1, G=Q*, H=P1, I=P*

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4
<p>label the diagram </p>

label the diagram

negative externality in production, A=MSC=MSC, B=MPC, C=MSC, D= private optimum, E=social optimum, F=Q1, G=Q*, H=P1, I=P*

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