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A human X-linkegenis
Socially Optimal
A condition or outcome that maximizes societal welfare, taking into account all costs and benefits to society as a whole.
Positive Externalities
Benefits that occur from a transaction or activity to third parties who are not directly involved in the transaction or activity.
External Costs
Costs of a transaction or activity that affect parties who did not choose to incur that cost and are not reflected in market prices, often necessitating government intervention.
External Benefits
The positive effects of a transaction or an activity on an uninvolved third party or the society at large, which are not reflected in the market prices.
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