Students need to understand the conditions under which a competitive market fails to produce the socially-optimal quantity of a good or service.They also need to know what steps a government can take to correct a negative externality (USA: EconEd 2017).
This video is an introduction to externalities, including the concepts of private cost, external cost, and social cost (USA: George Mason University 2019).
Students will learn in this EconEd-lesson that the profit-maximization rules for the monopoly are the same as they are for a perfectly competitive firm but the monopoly will produce a smaller output than society would like it to produce (USA 2016-22).
Students need to understand the conditions under which a competitive market fails to produce the socially-optimal quantity of a good or service.They also need to know what steps a government can take to correct a negative externality. (USA: EconEd 2020)