The As are finally over..
and suddenly i feel this very
strong sense of love for econs in me
as if a fat econs teacher who love to wear black
is clambing out of me
so here i m to teach "market failure"
WHAT DO WE PRODUCE?
firstly we look at what to produce for the consumers by looking at the demand
look at the dollar vote that the consumer give to the product
HOW DO WE PRODUCE?
we produce in anyway we want
as long as the cost of production is the least
as if the consumer really give the damn..
FOR WHOM DO WE PRODUCE?
for the consumer who demand for the goods most.
look at the follwing illustration:














by looking at this man we have answered
2 of the qn mentioned above

next we shall look at the externalities.
i shall only talk about the external cost in consumption.
since i believe that you all will know the rest of the externalities.
and i dun.
so external cost in consumption occur when
a third party who is not involved
in the production of the consumption of the goods.
get affected negatively due to the consumption of some joker.


FIG ONE
looking at this fig one..
we can see that
due to the fact that squid smoke..
we have to bear the sight of his ugly sight of his teeth..
ad this would hurt our eyes badly..
which is an adverse effect.
which will conclude the act of smoking as
a source of external cost in consumption..

SOLUTION
by putting a healthy sign and packaging something that is unhealthy
differently we can change the amount of externalities it causes..



Next we can look at public good.
a good where by the benefit will not be deprive or exclude anyone when
it is being consumed.
for example NATIONAL DEFENCE



This is jus a mock lesson.
To mock myself of my inabilities..
-chief potato, still sad...