The Market Tends to Overproduce Goods That Have External Costs

question 44

Multiple Choice

The market tends to overproduce goods that have external costs because

• A)Producers do not take into account those external costs that they don't have to pay.
• B)Producers experience higher costs than society.
• C)The government is not able to produce these goods.
• D)Producers cannot keep the goods from consumers who don't pay,so they produce a greater amount.

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