Principles of Microeconomics / Unit 12 MIC 1101 short lesson, about 20 seconds
Positive Externalities
Captions available
The idea
A positive externality is a benefit from a market exchange that lands on someone outside it: a vaccination protects the neighbors; new knowledge spreads to firms that paid nothing.
In practice
A flu shot buyer pays for their own protection and gives away the rest.
Where people slip
The buyer stops at their own benefit, so the market makes too few; the failure mirrors unit eleven's.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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