When teenagers go on Facebook, I am sure they only consider their Private Marignal Cost. (IF they do that I mean)
Like, not completing their homework, or not studying for their next class quiz.
They also only consider their Private Marginal Benefit.
AKA the fun they derive from doing such quizzes and playing the games.
(And announcing that they PWN all their classmates at Restaurant City)
However, I am sure they do not consider the External Marginal Cost. Which would be the annoyance on the teacher's part upon realising that said students did NOT do their homework. Or their parent's disappointment when they realise that their child scored yet another U.
NEGATIVE EXTERNALITY!
( I am sorry if this is a little confusing. I hope you know what I am talking about :) )
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