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economics · externalities · market equilibrium

Market Equilibrium with Negative Externality

유형 블록 다이어그램표준 Ogata / standard controls textbook convention엔진 schematex-blockdiagram업데이트됨 2026. 7. 24.
Market Equilibrium with Negative Externality
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A market with a negative externality, where the social cost of production exceeds the private cost, causing overproduction and deadweight loss.

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01

Model externality as additive disturbance to private supply.

02

Separate private and social market blocks to compare equilibrium quantities.

03

Use sum node to compute deadweight loss from quantity difference.

When illustrating how externalities cause market failure and quantifying welfare loss.

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