Y1/IB 23) Positive Externalities in Consumption and Production
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- เผยแพร่เมื่อ 24 ก.ย. 2024
- Y1/IB 23) Positive Externalities in Production and Consumption - An understanding behind why positive externalities in production and consumption cause market failure
Econplusdal is the plug🔌
0:33 If only he knew how relevant that would become...
yesssss
Thank you very much for these videos, I cannot explain how appreciative i am of them
this man low-key predicted covid classic dal
This is how one must teach! Amazing!
Very good video! Simple but very effective explanations that even somebody who doesnt do economics understands
I'll say it again... best econ teacher ever!
Simple, clear and to the point! You make the subject very interesting... Thank you very much!
i always try to remember to like all your videos. your explanation is solid. i really appreciate your help. carry on making more videos!👍👍👍👍👍 my way of hitting the thumbs up button is my way of wanting you to earn revenue in return for your hard work!
i like your brief explanation
truely saying i was stuck on externalaties for few weeks and finally got out
thank you very much
by the way i like your british accent
Thanks very much. You legend! Keep it up
Amazing! What a legend!
0:33 An anti-vax mum would probably mark you down
Relevant right now lol.
God bless you
thank you!! and keep making videos!!!
this man is a living God
Hi Dal, so sorry to bother you with this silly question. I don't understand why the social costs are greater than the private costs if these are POSITIVE externalities. Would really appreciate if you could shine a light on this situation xx
A video that actually really helped
Dal you're a wavy guy but isnt potential welfare gain more accurate than welfare loss. dont wanna question the master but thats what the cgp book says
I really don't like the wording of a 'potential welfare gain'. If welfare could have been gained but isn't then it is being lost by definition! Keeping things simple is my philosophy
uak mate dal put you in your place! Shoulda lead by your own words "don't question the master"
loool who are you mate? suck out
@@usman99628 yoooooooo ded
@@EconplusDal Sir your philosophy is saving my life
You're a legend
very good explanation sir , thank you very very very much for making these videos
Your explanation is brilliant!
AMazing description . But not included that ,what the graph looks like when government take some action to regulate the market
Great video broooo
Why does the market equilibrium only take into account private costs & at 3:08 do you mean the extra unit consumed? because i thought that part was +ve externalities of consumption, just a little confused there. Other than that great videos and I love the list you put together, very helpful!
Thank you!
Why are the MSC and MPC equal for consumption, but not equal for production?
Yo Mr Dal, my teacher taught the positive production externality the same as you have - the net welfare loss derived from the initial equilibirum on the diagram. My textbook and the graphs on google for positive production externalties is derived from Q2 though, with welfare loss extending upwards to the MPC curve... not sure who to believe
The are the same with different ways of thinking.
why is price lower if MSC take into account external and private cost. surely it should be higher than private cost price to reflect true cost of production to society hence be charged as a higher price....or is that just for negative externalities
Does it matter if you call it welfare gain instead of loss? Because we used welfare gain in class and i'm not sure if it's correct or not...
LJ Avr Basically it's welfare to be gained by increasing production. So you could say that, but personally I would go with welfare loss to be on the safer side.
+jamas3000 Nice reply, it is a welfare loss. Stick with that
legend
the beginning of my economics studies. wish me luck guys
you spelt externalities wrong XD thanks for all you do, mr dal!
Saving A LEVELS FOR ME
What’s the difference between IB22 and IB23??
Positive exteralities
Third party benefits that are ? Didn’t heard the word was it crew ????
But the marginal social cost on the graph at 6:52 is further to the right of the marginal private costs - doesn't this show that that is a negative externality because there is a greater cost to society than the private factory owner?
have you got the answer to this now, cuz i wanna know!! my doubt exactly
Shve Hasal If social cost is to the right of private cost it means that costs are lower not higher. Hence positive externality
The curve shifting to the right indicates a greater level of production of a good that provides welfare to society, this caused price (also cost if that helps) to drop thus indicating a lower price for a good that has benefits to society.
Can somebody explain to me why positive externality is a market failure?
***** Remember what market failure is: the inability of the free market to allocate resources at the social optimum. Because of the extra benefits (3rd party benefits) arising from positive externalities, not enough resources are allocated to goods/services that generate them. Society is therefore losing out on potential welfare from the under-production and subsequent under-consumption of such goods/services. The fact that quantity in the free market doesn't reflect the social optimum quantity reflects the fact that there is a misallocation of resources - the definition of market failure
Can you still get a diagram right if you put MPC=MSC instead of MSC= MPC ?
Yeah it’s the same thing 😂
Jen X lol just making sure
3:07, 6:20
Hi sir, thank you for this amazing explanation. I have one question. Say if a firm has researched and developed a new medicine, should this be a production or consumption externality? I think both the production and the consumption of the new medicine cause external benefits to the society.
Yes i know what you mean but i still think it is positive externality of consumption because if the vaccines get manufactured and not used it helps Nobody.
Is it always the social curve that moves left or right?
+Sakib Ikram yes
Why would positive externalities in production be social costs and not social benefits? P.s exam tomorrow!
+dan folo cost = firm, benefit = consumers
6:43 "..by producing them we gain more benefit than costs", what does that mean?
BTW great content, really appreciate it!
i've the same doubt
It means the benefits to society outweigh the negative costs to producing them. For example the positive impact of taking a vaccine to protect yourself and others from illnesses, outweigh the costs of production when making them. Hope that helps
Does the msc=mpc curve ever change ?
+Max Attwood In this example we are looking only at only the benefits of consuming/producing a good. It is fine to think about the other curve but for just positive externailites it is not needed.
this curve only moves when drawing positive or negative externalities in PRODUCTION as the msc=mpc curve is like the supply curve( supply goes hand in hand with production just as demand goes hand in hand with consumption)
you spelt externalities wrong on the whiteboard!
oh my goodness. The whole video is now worthless
U look like my boy zain nazar
What do you mean by poach?
steal, some firms can just offer a particular worker a higher wage if they work for their company and 'poach' that worker.
whaaaaaaaats the difference between merit goods and positive externality?
BliiiiBlaaaaBluuuub a merit good will cause a positive externality. When it's consumed welfare is gain by the consumer as well as third parties. This could be education or healthcare.
POSITIVE EXTERALITIES :p
daddy dal
lowkey you spelt externalities.....
covid