When a negative externality is present in a market,the quantity consumed:
A) is always less than the socially optimal quantity.
B) is more than the socially optimal quantity.
C) is the same as the socially optimal quantity.
D) is often less than the socially optimal quantity.

Question

Quizplus · Accepted Answer

When a negative externality is present, the market fails to account for the external costs, leading to overconsumption compared to the socially optimal level.

When a Negative Externality Is Present in a Market,the Quantity