Note: This is post #36 in a weekly video series on basic microeconomics.

What are externalities and what are the different kinds of costs? And what does this have to do with the rise of “superbugs”? In this video by Marginal Revolution University, Alex Tabarrok introduces externalities, including the concepts of private cost, external cost, and social cost.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: What are the arguments against international trade?