When a negative impact of foreign exchange is present, there is a cost for a third party not involved in the production or consumption of the good. Examples of the negative external: If a plant is likely to pollute without paying for the damage caused by pollution, it will produce more than the optimum of social production. Since the companies only pay for the marginal private costs of production or service, it will produce where marginal private cost benefit equilibrium marginal individuals. But when there are external factors, marginal private cost is not the same as the marginal social cost. Marginal social costs add to the cost of the marginal private cost of external factors, which is the vertical distance of the graphics between the private marginal cost and marginal social cost. If we are to capture the negative impact of foreign exchange, the optimal level of production will be lower than the amount of the market. As is, the excessive amount of output generated a loss not to society since the marginal social cost exceeds the marginal social benefit.
đang được dịch, vui lòng đợi..