Marginal Cost and Benefit Diagrams

The video tutorial covers the construction and analysis of marginal cost and benefit diagrams, focusing on the concept of the margin and its application in economics. It explains how to model externalities and provides a six-step process for constructing and analyzing these diagrams. The tutorial also discusses the differences between private and social costs and benefits, and how to identify deadweight loss in economic graphs.

What is the impact of a positive externality of consumption on the marginal social benefit curve?

How do you identify the social and private optimums in a marginal cost and benefit diagram?

What is the deadweight loss to society, and how is it represented in marginal cost and benefit diagrams?

In the case of a negative externality of production, how does the cost curve change?