One of the consequences of the existence of externalised costs is that the market place,as it currently operates,does not achieve the optimal outcomes for society as a whole.

Question

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Externalized costs refer to the societal and environmental costs of production that are not borne by the producer but are instead shifted onto society as a whole. The market place, therefore, does not factor in these costs and the prices of goods and services do not reflect their true cost to society. This leads to market failures and results in suboptimal outcomes for society as a whole.

One of the Consequences of the Existence of Externalised Costs