When there are significant external costs associated with its production, the market produces ______ of that good.
A) too little
B) too much
C) just the right amount
D) an unknown amount

Name: When there are significant external costs associated with its production, the market produces ______ of that good. A) too little B) too much C) just the right amount D) an unknown amount
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Question

Quizplus · Accepted Answer

When there are significant external costs, the market fails to account for these costs, leading to overproduction of the good.

When There Are Significant External Costs Associated with Its Production