The surplus gained by those outside the market due to the reduction in pollution is _____________ the surplus lost by consumers and producers in the market for gasoline when the negative externality is internalized.

Question

Quizplus · Accepted Answer

When a negative externality like pollution is internalized, the social benefit of reducing pollution typically outweighs the loss in surplus for consumers and producers, as the overall welfare improves by addressing the external costs.

The Surplus Gained by Those Outside the Market Due to the Reduction