00:03
Here, first of all, for the part a, it is being given when there is being no externality in this equation.
00:14
Then we have been generally given that it's a solution for the part a where no externality has been found out.
00:22
So, the private cost would be equals to social cost in this case.
00:27
So, therefore, the private value would also be equal to the social value.
00:37
Since there is a positive externality, then what is going to happen? the social value has to be greater than the private value.
00:50
Since here the social value which is being 8000 is being greater than the private value which is 6 ,50 ,000.
01:02
So, this implies that there is a positive externality being present in this case.
01:09
Second part, talking about the second part, since there is a positive externality being present in this case, so there would also be the external benefit being present in this case...