When negative externalities are present,it means that:
A) individuals don't take into account all the costs associated with their market choice.
B) society bears part of the cost borne of private transactions.
C) production and consumption is above the socially optimal level.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

All of these statements are true when negative externalities are present. Negative externalities are costs borne by individuals or society that are not taken into consideration in private transactions, resulting in social costs that exceed private costs. This leads to overproduction and overconsumption, which is above the socially optimal level. As a result, individuals do not take into account all of the costs associated with their market choice, and society bears part of the cost.

When Negative Externalities Are Present,it Means That