LO:
a) Distinction between private costs, external costs and social costs
b) Distinction between private benefits, external benefits and social benefits
c) Use of a diagram to illustrate:
d) Use of a diagram to illustrate:
e) The impact on economic agents of externalities and government intervention in various markets
a) Distinction between private costs, external costs and social costs
b) Distinction between private benefits, external benefits and social benefits
c) Use of a diagram to illustrate:
- the external costs of production using marginal analysis
- the distinction between market equilibrium and social optimum position
- identification of welfare loss area
d) Use of a diagram to illustrate:
- the external benefits of consumption using marginal analysis
- the distinction between market equilibrium and social optimum position
- identification of welfare gain area
e) The impact on economic agents of externalities and government intervention in various markets