When producing a good generates external or negative externalities, the private market for that good tends to produce too:
A)much of the product at too low a price.
B)much of the product at too high a price.
C)little of the product at too low a price.
D)little of the product at too high a price

Question

Quizplus · Accepted Answer

When negative externalities are present, the private market fails to account for the external costs, leading to overproduction and a lower price than the socially optimal level.

When Producing a Good Generates External or Negative Externalities, the Private