曼昆微观经济学 第五版 第十章 课文英文版(精品·公开课件).pptVIP

Externalities Chapter 10 Market Efficiency - Market Failures Recall that: Adam Smith’s “invisible hand” of the marketplace leads self-interested buyers and sellers in a market to maximize the total benefit that society can derive from a market. Market Failures: Externalities When a market outcome affects parties other than the buyers and sellers in the market, side-effects are created called externalities. Externalities cause markets to be inefficient, and thus fail to maximize total surplus. An externality arises... . . . when a person engages in an activity that influences the well-being