Y1 24) Positive Externalities in Consumption and Production

[@ammannawaz3648]

I would've never got an A in econ without your help, thank you for everything Dal

[@Frenk33]

The legend is back! This is not a drill, I repeat this is not a drill !!

[@michaelogunkoya5078]

Glazing?!

[@Aadam-l1o]

hop off bro no one cares

[@chasingkaizen]

Ur a neek

[@sskitty2532]

Wow! My teacher has spent lesson after lesson going over this and each time he said it, it just got more and more confusing but a few minutes from you and it all makes so much sense. Thank you so much for the wonderful help! Could never get an A* without you.

[@haranvinod6634]

I just want to say thank you, making economics , A level and my life lot easier

[@kimberleygagliardi6027]

I asked the internet, my tutor and jacob clifford what the welfare loss was, and then you said it in one sentence and then i thought OHHHHH!! that's so simple why couldn't I understand that before!! Thank you so much for your clear explanations.

[@laccess911]

My favorite Marvel Superhero is back saving more lives than ever, just with diagrams and markers!

[@gauravbhunjun6786]

thanks the lord this guy exists

[@TalhaConh]

Why are the external costs of production negative? I don't understand, aren't third party firms benefiting from R&D? 5:34

[@yjedxz]

@@TalhaConhit is negative because R&D costs money for firms, meaning other firms can poach this research for free without having to spend money. it is negative for the firm that has spent the money on r&d.

[@fmichael]

God bless you, Dal

[@lucatiulete9339]

HE'S ALIVE, HE'S ALIVE OPTIMUS IS HERE

[@yourmutualsmutual1933]

Thank you Sir , really .

[@nishantshah1064]

Arjun Joshi says wonderful video

[@lyodraslay]

thankyou for the explanation, i learn this for my project based learning😢

[@HarjaapSingh]

This is so good

[@avaasl6598]

When looking at positive externalities, wouldn't it be potential welfare gain rather than loss?

[@stevenv5999]

yes it is, the difference between MSB and MPB is the external benefit. MPB + MEB = MSB

[@nia9235]

That’s what I thought aswell

[@sam-zo6nr]

You are right. Dal said it wrong this time.

[@Beezo-j3i]

no, it causes a loss because positive externalities are underproduced/underconsumed even though production/consumption of beneficial to the society. take for example education, if u don't study or if teachers don't teach the society is at a loss.

[@robinscheunert4639]

this help me so much thank you

[@chrisg2580]

with all the positive comments, I must say, that I am finally understanding a bit more, and I think I may have a chance at passing my final exam...i wish i was this smart LOL

[@cnb4563]

You are biggest legend

[@jasperthomas3229]

when it is positive externalities is production, isnt marginal social cost on the left of marginal private cost, the diagram is just the same as a negative externalities is production diagram😵‍💫😧

[@jasperthomas3229]

please dont tell me dal made a mistake🙃🙃🙃

[@Reverb_JR]

@@jasperthomas3229 When it's positive externalities of production MSC will move to the right of MPC, when it's negative externalities of production MSC will move to the left of MPC

[@janafaramawy771]

@@Reverb_JR but how if mpc> msc

[@pjblitzkkng895]

@@janafaramawy771 i have same doubt. msc should be less than mpc right. that is calles positive. but here the diagram is opposite MSC is greater than MPC. confused.

[@shan601]

Just to check: For Edexcel you only need to know the positive externalities of consumption, and negative externalities of production diagrams?

[@yahyakhan6433]

yes!

[@benwhite2154]

Legend

[@Neyobe]

KING

[@umarhc]

isn't MSC the cost to society? so surley if it is greater than the MPC this is bad?

[@NotTayls]

The MSC curve only moves when it’s a positive production externality. And it shifts to the right, causing the price (cost) equilibrium to be lower (p1-p*) meaning there is a reduced amount of costs to society, and the shift also causes q1-q* allowing there to be more output with less costs on society

[@NotTayls]

Sorry if it don’t sound right I don’t have much time to write a good reply

[@ployc4637]

thank youu

[@TalhaConh]

Why are the external costs of production negative? I don't understand, aren't third party firms benefiting from R&D? 5:38

[@jordanzedi]

thanks

[@Rehanali-r3p]

how dyu know where the social optimum is

[@pigeonhero3889]

i love oyu

[@antisocialbarbie1587]

Then which part is welfare gain?

[@xkuroo17]

the welfare losses are potential welfare gains (only for positive externalities) that are achieved if it can move from being at the private optimum to being at the social optimum

[@LeBronAlGaib]

you’re unreal

[@gregg6077]

Legend