Term
| Marginal Private Benefit (MPB) |
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Definition
| The benefit that accures to the direct consumers of a good or service resulting from a one-unit increase in consumption as is reflected in the demand curve for the good or service. |
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Term
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Definition
| A change in the satisfaction, which can be either positive or negative, for someone other than the direct consumer of an item. |
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Term
| Marginal Private Cost (MPC) |
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Definition
| The increase in total cost that producers incur when output is increased by one unit as is reflected in the supply curve for the good or service. |
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Term
| Externality in Production |
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Definition
| The production of one good or service leading to cost changes, either positive or negetive, in the production of other items. |
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Term
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Definition
| Occurs when markets, operating on their own, do not lead to a socially optimal allocation of resources. |
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Term
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Definition
| The cost of production incurred by the producer to buy or hire the resources required to carry on business. |
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Term
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Definition
| The costs of production incurred by the producer for the use of self-owned, self-employed resources required to carry on business. |
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Term
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Definition
| A market that exists when firms are allowed to buy and sell goverment-issued licenses granting the holder the right to create a certain amount of pollution. |
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Term
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Definition
| Policies in which the government(s) involved establish a maximum acceptable level of pollution (the cap), then allow polluters to trade (the trade) vouchers made available by the government, which in total qual the acceptable level of pollution. |
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