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Introduction to Market Failure - Negative Externalities of Production 12 лет назад


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Introduction to Market Failure - Negative Externalities of Production

This video lesson introduces the concept of market failure and examines one type of market failure, a negative externality of production. If the producers of a good face lower costs than society as a whole, too much of the good will be produced and the market fails to achieve efficiency. In such a case, government may be needed to intervene and promote a more socially optimal level of output through the use of corrective taxes. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

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