Unit 2.8: Merit goods
This lesson looks at another reason for market failure in economics - the undersupply of merit goods in an economy. I find that students will sometimes confuse the concepts of merit goods and positive externalities. It is important to make the distinction that merit goods are goods or services that consumers will often undervalue, but which provide positive externalities to third parties when consumed. Positive externalities...
To access the entire contents of this site, you need to log in or subscribe to it.
Alternatively, you can request a one month free trial.