When the external negative effects of integration, incremental costs to society shows from this point the market has to take into consideration the effects that occur at any third party. At that point. The slope of a line, which is equal to MSB MSC at the performance of the market as of the socially efficient level of price and quantity Q is socially efficient quantity or another social optimum P, or Q social optimum. can see that if there is no consideration given to the negative impact of external third occurrence. The quantity will be greater than expected, or the most Overproduced corresponds to P competitive than socially efficient quantity P point, therefore, is one way to reduce the production to the appropriate level.
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