External costs can drive a wedge between the market demand curve and the social marginal WTP curve resulting in a market failure.
External costs drive a wedge between private marginal costs (i.e. ,the market supply curve)and social marginal costs.

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The Answer of External costs can drive a wedge between the market demand curve and the social marginal WTP curve resulting in a market failure.
External costs drive a wedge between private marginal costs (i.e. ,the market supply curve)and social marginal costs.

External Costs Can Drive a Wedge Between the Market Demand