Pages in this set

Page 1

Preview of page 1
Externalities, solutions and other market failure

Page 2

Preview of page 2
Today's presentation
Other kinds of market failure
What is market failure?
Externalities
Solutions

Page 3

Preview of page 3
What is market failure?

This definition comes up regularly!

It pays to define this term whenever it
appears in the question (just like other

Page 4

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definitions)

Page 5

Preview of page 5
Externalities

Page 6

Preview of page 6
Solutions
What makes them large/small
What they are
Positive and Things
negative you need to
know

Page 7

Preview of page 7
The diagrams

Page 8

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What are externalities?

Positive externalities
The costs or benefit
received by a third party
to an economic

Page 9

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transaction outside of the
market
mechanism; i.e.
the spillover effects of an
economic activity.
Negative externalities

Page 10

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What things go in externality
diagrams?
MSC, MPC, MSB, MPB
Private = Social optimum
DWL Under/overproduction

Comments

davidsalter

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This 35 slide presentation covers all aspect of what market failure is, including the diagrams and goes onto analyse and evaluate the possible remedies.

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Pages in this set

Page 1

Preview of page 1
Externalities, solutions and other market failure

Page 2

Preview of page 2
Today's presentation
Other kinds of market failure
What is market failure?
Externalities
Solutions

Page 3

Preview of page 3
What is market failure?

This definition comes up regularly!

It pays to define this term whenever it
appears in the question (just like other

Page 4

Preview of page 4
definitions)

Page 5

Preview of page 5
Externalities

Page 6

Preview of page 6
Solutions
What makes them large/small
What they are
Positive and Things
negative you need to
know

Page 7

Preview of page 7
The diagrams

Page 8

Preview of page 8
What are externalities?

Positive externalities
The costs or benefit
received by a third party
to an economic

Page 9

Preview of page 9
transaction outside of the
market
mechanism; i.e.
the spillover effects of an
economic activity.
Negative externalities

Page 10

Preview of page 10
What things go in externality
diagrams?
MSC, MPC, MSB, MPB
Private = Social optimum
DWL Under/overproduction

Comments

davidsalter

Report

This 35 slide presentation covers all aspect of what market failure is, including the diagrams and goes onto analyse and evaluate the possible remedies.