142k views
4 votes
The market will overproduce goods that have external costs because

User Stiig
by
8.3k points

1 Answer

3 votes

The likely reason as to why the market will overproduce goods that have external cost because of the fact that the producers experience a lower cost compared to the society making the market produce an overproduction of goods associated to external costs.

User Luis Averhoff
by
9.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.