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7.4.5 deadweight welfare losses arising from positive and negative externalities
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Market Output and the Social Optimum

Market Output and the Social Optimum

The social optimum is the output where marginal social benefit equals marginal social cost: MSB=MSCMSB = MSCMSB=MSC. At this output, net social welfare is maximised because all units with a social benefit greater than their social cost are produced.

7.4.5 deadweight welfare losses arising from positive and negative externalities Lesson

  1. Intl A Level
  2. /Economics
  3. /7.4.5 deadweight welfare losses arising from positive and negative externalities

Step-by-step lessons on CIE Intl A Level Economics 7.4.5 deadweight welfare losses arising from positive and negative externalities. Each one builds up to exam-style questions.