7.4 Marginal Social Benefit and Marginal Social Cost AP Micro

Рет қаралды 59,815

6 жыл бұрын

The socially optimal point of consumption/production is the point where MSB=MSC. On the board it incorrectly says MSB=MPB.

Пікірлер: 22

@Noobi1Cannonobi 5 жыл бұрын

Needed this for assignment, many thanks.

@ozansaglk6485 5 жыл бұрын

very well explained. But there is a small mistake on the equation at 5:58 --> it supposed to be MSB=MSC

@okkarnaywin6380 4 жыл бұрын

Thanks. very clear explanation.

@juliendet8285 2 ай бұрын

you saved me for my test🙏

@TheMdsafwan07 6 жыл бұрын

Thank u. Very well explained

@thecyborge1578 Жыл бұрын

Thanks a lot. Wish me luck on my third midterm tomorrow

@aidanlynch8729 2 жыл бұрын

Thank you, very helpful :)

@halayahia8744 3 жыл бұрын

Thank you so much!!

@arnegraphics3380 2 ай бұрын

Man AP gov AND micro, man is carrying these AP tests

@larsballer2385 3 жыл бұрын

great stuff thanks

@muluhmuluh8556 4 жыл бұрын

Very explicit explanation. Thanks

@CareyLaManna 4 жыл бұрын

No problem!

@mines3275 6 жыл бұрын

thank you!!!

@danaelona4081 5 жыл бұрын

Hello,my question is more like supply and demand both shift to thw left. So the price stays the same ultimately. The question asks what point is the social optimum at, in this situation? Would this mean that there is no social optimum bc the price stays the same?? Need help...

@CareyLaManna 5 жыл бұрын

It's hard to answer that w/o seeing the question. Depending on whether there are positive or negative externalities the socially optimal quantity may be greater or less than the market equilibrium.

@danaelona4081 5 жыл бұрын

@@CareyLaManna it says having drunk driverss on the road is a negative externality, that both consumers and producers must internalize.

@danaelona4081 5 жыл бұрын

@@CareyLaManna it also says: think about the contrast between the natural market equilibrium and the social optimum

@danaelona4081 5 жыл бұрын

I have 3 graph questions. I could send a picture of them through email if that would help. I have tried them all but gotten them wrong. dana.mh1236@gmail.com

@CareyLaManna 5 жыл бұрын

I'm not sure if this is what it's going for, but...the market equilibrium quantity of drunk driving > socially optimal quantity. This means that in equilibrium the price buyers are paying for drunk driving is too low and the price sellers are receiving is too high. The socially optimal quantity is a point to the left of market equilibrium at which there will be a wedge between supply and demand. Find the point where the SOQ intersects with the demand curve--this is the price buyers now pay (higher than before), then find the point where the SOQ intersects with the supply curve--this is the price sellers now receive (lower than before). These price changes reflect that both buyers and sellers are internalizing the external costs of drunk driving.