External costs can drive a wedge between the ?_______ and the _________ resulting in a market failure.

Question

Quizplus · Accepted Answer

External costs, such as pollution, can cause the market supply curve to not fully account for the true costs of production, leading to a discrepancy between the market supply curve and the social marginal costs. This discrepancy can result in a market failure, as the market price and quantity do not reflect the true costs to society.

External Costs Can Drive a Wedge Between the ?_______ and the _________

External Costs Can Drive a Wedge Between the ?_ and the ___