Question

The market will overproduce goods that have external costs because Group of answer choices Producers experience higher costs than society Producers experience lower costs than society Producers cannot keep these goods from consumers who do not pay, so they have to produce greater amounts The government is not able to produce these goods

Answer 1

Answer:

Producers experience lower costs than society

Explanation:

In the case when the market excess produce the goods that contains the external cost so it should be because of producers would have less cost as compared to the society that means the private equilibrium cost should be less than the social equilibrium cost

So as per the given situation, the above statement should be true