Market failure occurs when pollution creates Internal costs not

compensated for within the normal market mechanism

When there is market failure of a Negative Externality true or false

change words

Private costs exceed Social costs

Social welfare is therefore decreased

The utility or satisfaction derived from producer

External benefit = Private benefit + Social benefit

Activities where the external benefit is negative

Activities where consumption creates a positive external

benefit

Social benefit is greater than private benefit

External or social costs are cost of an economic decision to a

second party