Robert Kirchman's site

ECON 102: Deadweight Loss and Positive Externality

posted Mar 27, 2012, 5:19 PM by Robert Kirchman
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.
Comments