Hi, i am still confused about the welfare loss part. I dont understand why the marginal social cost Y is lower than the marginal social benefit X... Thanks for the video and explanation. ^^
Since there are additional benefits to society, the social cost of this research is actually lower than the private cost if you account for the external benefits. For example, firms who research and innovate develop breakthroughs that can benefit other firms. However, if they are the only group who bears the cost of such research, they are unlikely to pursue as much as is socially optimal.
Externalities are a source of market failure. External benefits are not considered by producers or consumers. So they're underconsumed in free market system. And as free riders will enjoy without contributing there will underinvestment by producers
Pls reply, for Positive production externalities on the demand curve is it right to assume that private benefits increase as consumption increases, and also is it assumed there are no external benefits or is it costs
most of your videos are amazing but this one was soo hard to understand and im still confused tbh, it felt very hard to keep my attention to what youre trying to say exactly too because of the amoutn of repitition of words it felt like i heard the same word a million times but have no idea what the piont is exactly ykwim? like a textbook paragraph almost; thanky you for the video thoguh, u covered a lot of content which was great but i and many others inteh comments didnt really get it
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I'm still confuse
Where is positive consumption externality ?
Hi, i am still confused about the welfare loss part.
I dont understand why the marginal social cost Y is lower than the marginal social benefit X...
Thanks for the video and explanation. ^^
Since there are additional benefits to society, the social cost of this research is actually lower than the private cost if you account for the external benefits.
For example, firms who research and innovate develop breakthroughs that can benefit other firms. However, if they are the only group who bears the cost of such research, they are unlikely to pursue as much as is socially optimal.
Externalities are a source of market failure. External benefits are not considered by producers or consumers. So they're underconsumed in free market system. And as free riders will enjoy without contributing there will underinvestment by producers
Pls reply, for Positive production externalities on the demand curve is it right to assume that private benefits increase as consumption increases, and also is it assumed there are no external benefits or is it costs
Hi dude, do u have Instagram, I needed some help in A2 economics
Thank you sir!!!
most of your videos are amazing but this one was soo hard to understand and im still confused tbh, it felt very hard to keep my attention to what youre trying to say exactly too because of the amoutn of repitition of words it felt like i heard the same word a million times but have no idea what the piont is exactly ykwim? like a textbook paragraph almost; thanky you for the video thoguh, u covered a lot of content which was great but i and many others inteh comments didnt really get it
thank u