Sticky: ECON 102: Deadweight Loss and Positive Externality

posted Mar 27, 2012, 5:19 PM by Robert Kirchman   [ updated Sep 19, 2014, 5:43 PM ]
Hi Everyone
Hubbard and O'Brien does a not-so-great job of explaining where the deadweight loss arising from an externality comes from.
So I made a little exhibit to try to break it down a bit.  I chose the positive externality (benefit) case to illustrate.  Can you figure out how to do the negative externality (cost) case?
Go to "Forms and Docs" to see the exhibit.