This document discusses key concepts in managerial economics including defining moments in economics, externalities, market failure, and public goods. It outlines five phases that fundamentally changed economics: the industrial revolution, capitalism, rise and fall of socialism, the Great Depression, and the information revolution. Externalities are effects on third parties from production or consumption. Positive externalities benefit others, while negative externalities harm third parties. Market failure occurs when the market is inefficient in allocating resources due to issues like asymmetric information, monopoly power, lack of public goods, and externalities. Public goods are non-rival and non-exclusive, providing benefits at no marginal cost.