Explain why in the four diagrams its deadweight welfare loss? I think for negative externalities, it is correct, for positive externalities, I think they are the gains not losses? Address all the diagrams , thanks

Examples of negative externalities of consumption . Consuming alcohol leads to an increase in drunkenness, increased risk of car accidents and social disorder. . Consuming loud music late at night keeps your neighbours awake. . Consuming cigarettes causes passive smoking to others in the vacinity. Diagram of negative externality in consumption Negative externality P in consumption S= PMC = SMC P2 P1 deadweight welfare loss D= PMB SMB Q2 Q1 QExamples of negative production externalities . Burning coal for energy creates pollution. . Producing conventional vegetables with pesticides causes carcinogens to get into the environment. . Producing beef in South America involves cutting down Amazon rainforest, which has an impact on global climate and local environment SMC P S=PMC deadweight welfare loss P2 P1 D= PMB = SMB Q2 Q1 QSocial Benefit . With positive externalities, the benefit to society is greater than your personal benefit. . Therefore with a positive externality the Social Benefit > Private Benefit . Remember Social Benefit = private benefit + external benefit. Diagram of Positive Externality (consumption) P S= PMC = SMC deadweight welfare loss P2 P1 SMB D= PMB . . . . Q1 Q2 Q www.economicshelp.orgDiagram of positive externality in production Positive externality in production S= PMC P SMC P1 P2 deadweight welfare loss D= PMB = SMB Q1 Q2 Q Free Socially www.economicshelp.org Market efficient . Because there are positive externalities in production, the social marginal cost of production is less than the private marginal cost of production. . In a free market, a firm will ignore benefits to third parties and will produce at Q1 (free market outcome) . However, the socially efficient level will be at Q2 (where social marginal cost = social marginal benefit)