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hey how you doing this mr. with ac/dc econ key economic concepts in 60 seconds today weamp;#39;re going to talk about market failures and the role the government weamp;#39;re talking about externalities which is one of the for market failures that youamp;#39;re going to find out about okay today I want to talk about negative externalities weamp;#39;re all so-called spillover cost when costs spill over to someone other than the original producer or the consumer some other person wasnamp;#39;t involved with the transaction Iamp;#39;m going to show you the graphic Iamp;#39;m going to show you a concept that might tell you the problem and also the government solution the government steps in and tries to solve or fix the negative externality Iamp;#39;m going to show you in 60 seconds take a look at a graph hereamp;#39;s market for cigarettes price quantity here is the demand marginal social benefit what people are going to pay for cigarettes and hereamp;#39;s the marginal cost tha
