A perfectly competitive steel mill that produces large amounts of a pollution (a negative externality)will,from a social point of view,produce:

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Quizplus · Accepted Answer

A perfectly competitive steel mill that produces large amounts of pollution will not take into account the negative externality of the pollution in their production decision, leading to a market outcome where too much steel is produced, resulting in too much pollution from the mill. Therefore, from a social point of view, the optimal outcome would be to produce less steel and reduce pollution, which means that the market outcome of too much steel is not socially desirable.

A Perfectly Competitive Steel Mill That Produces Large Amounts of a Pollution