-The figure above shows the private marginal cost curve, the social marginal cost curve and the market demand curve. If the market is unregulated, then

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In an unregulated market, firms only consider their private marginal costs when making production decisions, ignoring the external costs to society (social marginal costs). This typically results in a quantity produced that is greater than the socially efficient quantity, where social marginal costs would equal market demand.

-The Figure Above Shows the Private Marginal Cost Curve, the Social