{
  "id": "positive-production-externality",
  "name": "Positive production externality",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Market failure",
  "hl": false,
  "description": "Production creates external benefits for third parties (e.g. worker training, R&D spillovers), so MSC lies below MPC and the free market under-produces: Q_m < Q*.",
  "keywords": [
    "positive externality",
    "production externality",
    "external benefit",
    "MSC",
    "MPC",
    "underproduction",
    "under-allocation",
    "welfare loss",
    "subsidy",
    "training",
    "research and development"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/positive-production-externality",
  "previewUrl": "https://graphs.lectere.com/thumbs/positive-production-externality.svg",
  "editorUrl": "https://graphs.lectere.com/graph/positive-production-externality/",
  "params": [
    {
      "key": "policy",
      "label": "Government response",
      "default": "none",
      "type": "enum",
      "options": [
        {
          "value": "none",
          "label": "None"
        },
        {
          "value": "subsidy",
          "label": "Subsidy to producers"
        }
      ]
    },
    {
      "key": "dwl",
      "label": "Shade welfare loss",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "marker",
      "label": "Mark the external benefit",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "shape",
      "label": "Social curve",
      "default": "parallel",
      "group": "Shape",
      "type": "enum",
      "options": [
        {
          "value": "parallel",
          "label": "Parallel (constant externality per unit)"
        },
        {
          "value": "diverging",
          "label": "Diverging (externality grows with output)"
        }
      ]
    },
    {
      "key": "ext",
      "label": "Size of external benefit",
      "default": 2,
      "group": "Shape",
      "type": "number",
      "min": 0.6,
      "max": 3.5,
      "step": 0.1
    },
    {
      "key": "dSlope",
      "label": "Demand steepness",
      "default": 0.8,
      "group": "Shape",
      "type": "number",
      "min": 0.3,
      "max": 2.5,
      "step": 0.05
    },
    {
      "key": "sSlope",
      "label": "Supply steepness",
      "default": 0.8,
      "group": "Shape",
      "type": "number",
      "min": 0.3,
      "max": 2.5,
      "step": 0.05
    }
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    "dwl": true,
    "marker": true,
    "shape": "parallel",
    "ext": 2,
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    "sSlope": 0.8
  },
  "panels": [
    {
      "id": "main",
      "title": null,
      "xLabel": "Quantity",
      "yLabel": "Price",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "main:x",
        "y": "main:y"
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  ],
  "labels": [
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      "key": "main:y",
      "default": "Price",
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      "panel": "main"
    },
    {
      "key": "main:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "main"
    },
    {
      "key": "main.dwl",
      "default": "WL",
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      "panel": "main"
    },
    {
      "key": "main.external",
      "default": "external benefit",
      "hint": "Arrow / line",
      "panel": "main"
    },
    {
      "key": "main.d",
      "default": "D = MPB = MSB",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.s",
      "default": "S = MPC",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.social",
      "default": "MSC",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.market:y",
      "default": "P_m",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.market:x",
      "default": "Q_m",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.optimum:y",
      "default": "P*",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.optimum:x",
      "default": "Q*",
      "hint": "Horizontal-axis value",
      "panel": "main"
    }
  ],
  "elements": [
    {
      "key": "main.dwl",
      "kind": "area",
      "label": "WL"
    },
    {
      "key": "main.external",
      "kind": "line",
      "label": "external benefit"
    },
    {
      "key": "main.d",
      "kind": "curve",
      "label": "D = MPB = MSB"
    },
    {
      "key": "main.s",
      "kind": "curve",
      "label": "S = MPC"
    },
    {
      "key": "main.social",
      "kind": "curve",
      "label": "MSC"
    },
    {
      "key": "main.market",
      "kind": "point"
    },
    {
      "key": "main.optimum",
      "kind": "point"
    }
  ],
  "stats": null,
  "example": {
    "template": "positive-production-externality",
    "params": {
      "policy": "none",
      "dwl": true,
      "marker": true,
      "shape": "parallel",
      "ext": 2,
      "dSlope": 0.8,
      "sSlope": 0.8
    }
  }
}