4.1.6: Interalizing a Negative Externality via a Per Unit Tax

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From the course by University of Pennsylvania
Microeconomics: When Markets Fail
160 ratings
University of Pennsylvania

Microeconomics: When Markets Fail

160 ratings
From the lesson
Externalities + Public Goods
Two classic cases of market failure will be defined and explored: externalities and public goods. We will define each case, demonstrate why the market fails to provide the efficient outcome and suggest interventions through either marked design or regulation.

Meet the Instructors

  • Rebecca Stein
    Rebecca Stein
    Senior Lecturer
    Economics