Value 到 MSB D MC P* MEB 91 Repair Level External Benefits
External Benefits Value
When there are positive externalities,marginal social benefits MSB are higher than marginal benefits D.The difference is the marginal external benefit MEB.A self-interested home owner invests q in repairs,determined by the intersection of the marginal benefit curve D and the marginal cost curve MC. The efficient level of repair q*is higher and is given by the intersection of the marginal social benefit and marginal cost curves
When there are positive externalities, marginal social benefits MSB are higher than marginal benefits D. The difference is the marginal external benefit MEB. A self-interested home owner invests q1 in repairs, determined by the intersection of the marginal benefit curve D and the marginal cost curve MC. The efficient level of repair q* is higher and is given by the intersection of the marginal social benefit and marginal cost curves
18.2 Ways of Correcting Market Failure Dollars MSC per Unit missions 6 MCA 0 246810121416182022 2426 Eo E* E1 Level of Emissions The Efficient Level of Emissions
The Efficient Level of Emissions 18.2 Ways of Correcting Market Failure
The efficient level of factory emissions is the level that equates the marginal social cost of emissions MSC to the benefit associated with lower abatement costs MCA (marginal cost of abating emissions)(边际减污成本). The efficient level of 12 units is E*
The efficient level of factory emissions is the level that equates the marginal social cost of emissions MSC to the benefit associated with lower abatement costs MCA (marginal cost of abating emissions) (边际减污成本). The efficient level of 12 units is E*
▣Emissions standard Legal limit on the amount of pollutant that a firm can emit. ▣Emissions fee Charge levied on each unit of a firm's emissions
Emissions standard Legal limit on the amount of pollutant that a firm can emit. Emissions fee Charge levied on each unit of a firm’s emissions