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hi there welcome to the next video in our series of revision videos looking at the economics of externalities and market failure now in the last video we went through some analysis diagrams showing how uh you can visualize diagrammatically negative externalities from production and also the social welfare loss letamp;#39;s spend a few minutes thinking about different types of intervention from government different parts of types of policy that might be used to control externalities and also crucially to reduce the market failure quick reminder from the last video what is the essential point about negative externalities and market failure and the point is that often in markets agents producers consumers they do not take account of the costs the external costs that their decisions impose on others and therefore the free market price the price mechanism fails to price negative externalities properly leading to excessively high output from a social perspective now if you have market failu