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The Diagram Below Illustrates an External Benefit

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The diagram below illustrates an external benefit. D1 is the marginal private benefit and D2 is the marginal social benefit. The diagram below illustrates an external benefit. D<sub>1</sub> is the marginal private benefit and D<sub>2</sub> is the marginal social benefit.   Using this diagram, demonstrate graphically and explain verbally how the government can subsidize the consumer so as to integrate the external benefit. Using this diagram, demonstrate graphically and explain verbally how the government can subsidize the consumer so as to integrate the external benefit.


Definitions:

Grand Narrative

Large-scale theories or philosophies that attempt to explain large aspects of history, society, or culture as a whole.

Nazi Germany

The period of German history from 1933 to 1945 under the dictatorship of Adolf Hitler, characterized by fascism, WWII aggression, and the Holocaust.

Giorgio Agamben

An Italian philosopher known for his work on the concept of the state of exception, bio-politics, and the relationship between law, politics, and life.

Foucault

A French philosopher and social theorist known for his influence on a wide range of disciplines including sociology, history, and critical theory, particularly for his work on power, knowledge, and discourse.

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