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6 Cards in this Set
- Front
- Back
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Cartel
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-group of firms that cooperate to limit quantities and drive up price.
-Inelastic demand |
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Externalities
Private Costs |
Explicit costs of production
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Externalities
Social Costs |
Private Costs + Costs from Externalities
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Marginal External Cost
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Increase in cost imposed externally as one or more firms increase output by 1.
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(-) Externalities
DWL= |
Social Cost-Private Cost
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Externalities
Welfare is Maximized where Price= |
Social Marginal Cost
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