Fisheries Economics

8.5.1 Externality and social cost

The concept of externality and social cost is dealt in welfare economics which is also called social – welfare economics .It attempts to measure welfare (social), that is, what it constitutes and how such a maximum can be attained.

Economic welfare means the satisfaction desired from the use of exchangeable goods and services and can be expressed as a function of goods and services and their relative prices. Thus, welfare economics undertakes evaluation of the social desirability of alternative economic uses.