Understanding Negative Externalities in Economics

The video tutorial explains the concept of externalities, focusing on negative production and consumption externalities. It highlights how these externalities create external costs that lead to a divergence between private and social costs and benefits, resulting in market failure. Examples such as pollution from factories and the consumption of sugary foods illustrate how these externalities affect society.

Discuss the impact of pollution from production on marginal social costs.

What are the long-term effects of consuming demerit goods on public health services?