Principles of Microeconomics / Unit 12 MIC 1102 short lesson, about 20 seconds
Marginal Private Benefit and Marginal Social Benefit
Captions available
The idea
Marginal private benefit is what the buyer gains from one more unit; demand is drawn from it. Marginal social benefit adds the spillover and lies above demand, so the market quantity falls short of the optimum.
In practice
Too few shots, at too low a price.
Where people slip
Supply is marginal social cost here; the optimum is where it meets social benefit.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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