Externalities in Production and Consumption (AQA A-Level Economics): Quizzes

Difference between private & social costs

Too much of the good is produced

Not enough of the good is produced

Benefiting from a good without paying

$MSC = MPC + MEC$

$MSB = MPB + MEB$

Resource over-exploitation w/o property rights

$P = MSC$

$MSB = MSC$

$MSC > MPC$