Negative Externalities

[@aparnachatterjee671]

during the price calculation of socially optimal level.. why didn't you do it like 200-(40+40) ... Since you hold that P =MC+MEC for socially optimal outcome.? then why do you make it 200-40 only for deriving the price .? please clear this confusion. ..

[@EconomicsinManyLessons]

For the socially optimal outcome (where Q = 40), P = $160 (this is where demand intersects MSC), MC = $120 (plug Q = 40 into MC), and MEC = $40 (plug 40 into MEC), so it's true that P = MC + MEC

[@migueru1464]

thank you very much nice video

[@InderjitSingh12]

good stuff

[@rekhabhatt6829]

Plz answer my question. You have rotated the supply Curve while some people just shift it parallely to initial one. Why is it so?

[@EconomicsinManyLessons]

My marginal external cost function (MEC = Q) is not constant but rises by $1 for each unit of output. If I used a function like MEC = 10, the supply curve would do a parallel shift up by $10.

[@rekhabhatt6829]

@@EconomicsinManyLessons Thankyou ❤