Acceptable logotypeECO 2030. Principles of Economics-Price Theory

Market Failure: Externality

Negative Externality

  1. Private costs
  2. External costs
  3. Social costs
  4. Market failure

Positive Externality

  1. Private benefits
  2. External benefits
  3. Social benefits
  4. Market failure

Public Policy

  1. Coase theorem
  2. Regulation
  3. Taxes
  4. Subsidies
  5. Marketable permits