Wow! My teacher has spent lesson after lesson going over this and each time he said it, it just got more and more confusing but a few minutes from you and it all makes so much sense. Thank you so much for the wonderful help! Could never get an A* without you.
I asked the internet, my tutor and jacob clifford what the welfare loss was, and then you said it in one sentence and then i thought OHHHHH!! that's so simple why couldn't I understand that before!! Thank you so much for your clear explanations.
@@TalhaConhit is negative because R&D costs money for firms, meaning other firms can poach this research for free without having to spend money. it is negative for the firm that has spent the money on r&d.
no, it causes a loss because positive externalities are underproduced/underconsumed even though production/consumption of beneficial to the society. take for example education, if u don't study or if teachers don't teach the society is at a loss.
with all the positive comments, I must say, that I am finally understanding a bit more, and I think I may have a chance at passing my final exam...i wish i was this smart LOL
when it is positive externalities is production, isnt marginal social cost on the left of marginal private cost, the diagram is just the same as a negative externalities is production diagram😵💫😧
@@jasperthomas3229 When it's positive externalities of production MSC will move to the right of MPC, when it's negative externalities of production MSC will move to the left of MPC
@@janafaramawy771 i have same doubt. msc should be less than mpc right. that is calles positive. but here the diagram is opposite MSC is greater than MPC. confused.
The MSC curve only moves when it’s a positive production externality. And it shifts to the right, causing the price (cost) equilibrium to be lower (p1-p*) meaning there is a reduced amount of costs to society, and the shift also causes q1-q* allowing there to be more output with less costs on society
the welfare losses are potential welfare gains (only for positive externalities) that are achieved if it can move from being at the private optimum to being at the social optimum
I would've never got an A in econ without your help, thank you for everything Dal
The legend is back! This is not a drill, I repeat this is not a drill !!
Glazing?!
hop off bro no one cares
Ur a neek
Wow! My teacher has spent lesson after lesson going over this and each time he said it, it just got more and more confusing but a few minutes from you and it all makes so much sense.
Thank you so much for the wonderful help! Could never get an A* without you.
I asked the internet, my tutor and jacob clifford what the welfare loss was, and then you said it in one sentence and then i thought OHHHHH!! that's so simple why couldn't I understand that before!! Thank you so much for your clear explanations.
I just want to say thank you, making economics , A level and my life lot easier
My favorite Marvel Superhero is back saving more lives than ever, just with diagrams and markers!
God bless you, Dal
thanks the lord this guy exists
Why are the external costs of production negative? I don't understand, aren't third party firms benefiting from R&D? 5:34
@@TalhaConhit is negative because R&D costs money for firms, meaning other firms can poach this research for free without having to spend money. it is negative for the firm that has spent the money on r&d.
HE'S ALIVE, HE'S ALIVE OPTIMUS IS HERE
Thank you Sir , really .
This is so good
Arjun Joshi says wonderful video
When looking at positive externalities, wouldn't it be potential welfare gain rather than loss?
yes it is, the difference between MSB and MPB is the external benefit. MPB + MEB = MSB
That’s what I thought aswell
You are right. Dal said it wrong this time.
no, it causes a loss because positive externalities are underproduced/underconsumed even though production/consumption of beneficial to the society. take for example education, if u don't study or if teachers don't teach the society is at a loss.
thankyou for the explanation, i learn this for my project based learning😢
this help me so much thank you
with all the positive comments, I must say, that I am finally understanding a bit more, and I think I may have a chance at passing my final exam...i wish i was this smart LOL
KING
Legend
You are biggest legend
Just to check:
For Edexcel you only need to know the positive externalities of consumption, and negative externalities of production diagrams?
yes!
i love oyu
when it is positive externalities is production, isnt marginal social cost on the left of marginal private cost, the diagram is just the same as a negative externalities is production diagram😵💫😧
please dont tell me dal made a mistake🙃🙃🙃
@@jasperthomas3229 When it's positive externalities of production MSC will move to the right of MPC, when it's negative externalities of production MSC will move to the left of MPC
@@Reverb_JR but how if mpc> msc
@@janafaramawy771 i have same doubt. msc should be less than mpc right. that is calles positive. but here the diagram is opposite MSC is greater than MPC. confused.
thank youu
Why are the external costs of production negative? I don't understand, aren't third party firms benefiting from R&D? 5:38
how dyu know where the social optimum is
The point of intersection of the two ‘socials’
thanks
isn't MSC the cost to society? so surley if it is greater than the MPC this is bad?
The MSC curve only moves when it’s a positive production externality. And it shifts to the right, causing the price (cost) equilibrium to be lower (p1-p*) meaning there is a reduced amount of costs to society, and the shift also causes q1-q* allowing there to be more output with less costs on society
Sorry if it don’t sound right I don’t have much time to write a good reply
Then which part is welfare gain?
the welfare losses are potential welfare gains (only for positive externalities) that are achieved if it can move from being at the private optimum to being at the social optimum
you’re unreal
Legend