Section 1: Microeconomics

4 types of goods. Market failure. inefficiency . Public goods ‐ Free rider problem ‐ Rival in consumption ‐ Excludability ‐ Common resources ‐ Tragedy of the commons ‐ Private goods ‐ Artificially scarce goods. Externalities ‐ Marginal private, social cost ‐ Marginal private, social benefit ‐ Positive externalities: MPB < MSB ‐ ................
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