A market with negative externalities will tend to _____ compared to a market producing the socially optimal output.

Name: A market with negative externalities will tend to _____ compared to a market producing the socially optimal output.
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Question

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Markets with negative externalities (e.g., pollution) tend to overproduce because they do not account for the external costs imposed on society. This overproduction often comes with a lower price since the external costs are not reflected in the production costs.

A Market with Negative Externalities Will Tend to _____ Compared