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Ch. 7 - ExternalitiesWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Microeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Floors
Ch. 6 - Introduction to Taxes and Subsidies
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - The Costs of Production
Ch. 11 - Perfect Competition
Ch. 12 - Monopoly
Ch. 13 - Monopolistic Competition
Ch. 14 - Oligopoly
Ch. 15 - Markets for the Factors of Production
Ch. 16 - Income Inequality and Poverty
Ch. 17 - Asymmetric Information, Voting, and Public Choice
Ch. 18 - Consumer Choice and Behavioral Economics
Sections
Externalities: Social Benefits and Social Costs
Public Solutions to Externalities
Private Solutions to Externalities: The Coase Theorem
Learn
If conditions are just right, private solutions to externalities can occur. This means the government doesn't have to put its sticky fingers in our market!

Concept #1: The Coase Theorem

Practice: A key element of the Coase theorem is:

Practice: Which of the following is not a way of dealing with externalities?

Practice: If the assumptions of the Coase theorem are satisfied, th

Practice: It is possible to remedy a positive externality by:

Practice: The socially optimal level of pollution:

Previous SectionPublic Solutions to Externalities