One consequence of a negative externality is that
A)social costs are greater than private costs.
B)private costs are greater than social costs.
C)the marginal private cost curve slopes upward.
D)the market output is less than the socially optimal output.

Question

Quizplus · Accepted Answer

Negative externalities occur when the social costs of a good or service exceed the private costs, leading to overproduction and inefficiency in the market.

One Consequence of a Negative Externality Is That