Types of Market Failure

[@edemasase4152]

Thanks..i was lmao on the 'invisible foot kicking you in the butt..''. hahahahaha

[@danaelona4081]

If a good that generates positive externalities is priced to internalized the externality, then the price increases or decreases?? And will the ouput rise or fall??

[@FreeEconHelp]

Generally a positive externality means the good/service is under produced and consumed. By internalizing the externality prices and quantity should rise (whether it is on the consumer or producer). See www.freeeconhelp.com/2011/08/what-are-positive-externalities-case.html for more information.

[@eggjewla]

This video was so helpful with simple explanations and the graphs to go with it, thanks!

[@danaelona4081]

Is a student using her cellphone in class : positive or negative externality.... or neither??

[@FreeEconHelp]

Depends on the context, but if the cellphone use is distracting or harming nearby students is would be negative. If the student was looking up information and sharing it.... it is possible that it is positive (but 99% sure it's negative). See www.freeeconhelp.com/2015/08/demand-side-externalities.html for examples.

[@leemon4241]

Thank you, sir. what are the effects of market failure on prices, efficiency of market operation and economic welfare?

[@FreeEconHelp]

All bad I’m afraid, that’s why it’s a failure.

[@dustinrossg]

@@FreeEconHelp Great answer lol so that means the price increases, efficiency decreases, and economic welfare would decrease as well?

[@sylvesterkbockarie7576]

You need to have start everything about the topic

[@Anto98Masini]

Thanks!!!