By contrast with a market that produces the socially optimal output, a market with negative externalities will:

Name: By contrast with a market that produces the socially optimal output, a market with negative externalities will:
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Quizplus · Accepted Answer

A market with negative externalities (e.g., pollution) tends to overproduce because it does not account for the external costs imposed on society, leading to a higher output than what is socially optimal.

By Contrast with a Market That Produces the Socially Optimal