Micro Unit 6, Question 7- Negative Externality

The video tutorial explains the concept of negative externalities, focusing on demand and supply curves. It highlights the difference between marginal social benefit and marginal private cost, leading to consumer surplus and market equilibrium. The tutorial then delves into deadweight loss and market failure, emphasizing the importance of considering external costs. A trick for identifying deadweight loss in various market scenarios, such as monopolies and price controls, is also shared.

What is the significance of the quantity that is socially optimal?

Describe the trick for finding deadweight loss mentioned in the text.