How Do Positive Externalities Cause Market Failure?
Автор: Learn About Economics
Загружено: 2026-01-22
Просмотров: 10
Описание:
Ever wondered why some actions that benefit society as a whole are still underproduced by the free market? This video unpacks the concept of positive externalities and reveals how they lead to significant market failures, costing society potential welfare gains.
In this video, you'll discover:
► What positive externalities are and how they generate widespread societal benefits beyond individual transactions.
► The core reason free markets underproduce goods and services with positive externalities: the divergence between private and social benefits.
► Real-world examples, from landscaping to vaccinations, illustrating the impact of these external benefits.
► How government intervention, through subsidies, direct provision, or regulations, can correct these market failures.
► The critical difference between private efficiency and social efficiency, and how understanding it informs public policy.
#PositiveExternalities, #MarketFailure, #EconomicsExplained, #PublicPolicy
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