If the social cost of producing a good exceeds the private cost,

Name: If the social cost of producing a good exceeds the private cost,
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the social cost of producing a good exceeds the private cost, it means that there are additional costs to society not accounted for by the producer. This scenario is indicative of a negative externality, where the production or consumption of a good causes harm to a third party not involved in the transaction.

If the Social Cost of Producing a Good Exceeds the Private