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Public goods and externalities

4 videos
In many scenarios thinking only about producers' marginal cost or consumers' marginal benefit does not fully capture *all* of the costs or benefits from the production/use of a product. In this tutorial, we explore these externalities (negative and positive ones) to think a bit deeper about ways to maximize total surplus not just for producers and consumers, but for society as a whole.

Negative externalities

VIDEO 6:00 minutes
Taking negative externalities into account when thinking about the optimal equilibrium price and quantity

Taxes for factoring in negative externalities

VIDEO 5:45 minutes
How to factor in negative externalities through taxation

Positive externalities

VIDEO 7:25 minutes
Factoring in external benefits

Tragedy of the commons

VIDEO 6:38 minutes
How public resources can be abused