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Nana76 [90]
3 years ago
10

A negative externality exists when social costs exceed _________

Business
1 answer:
poizon [28]3 years ago
7 0

Answer:

The answer is

A negative externality exists when social costs exceed private costs.

The net effect of a negative externality decreases

both producer and consumer surpluses.

Explanation:

Negative externalities occur when production and/or consumption impose external costs on third parties outside of the market for which no appropriate compensation is paid. This causes social costs to exceed private costs.

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