Negative externalities are seen when an individual or firm makes a decision and doesn 't have to pay the full cost of the. Decision. If a good has a negative externality the cost, to society is greater than the cost the consumer is paying for. It. This results in inefficiencies and welfare loss and the, welfare can be gained by reducing the quantity produced.A tax is one way to reduce the quantity produced to the socially optimal level
.When combining the negative externalities market shows the social cost curve from this point the market has impact occurred at the third party. At that point, the slope of the line MSB was MSC, which is a powerful point of the market.Efficient price and levels of Q socially efficient quantity or another name is P social optimum or Q social optimum will see that if there is no considering the negative externalities caused a third party then. The quantity is more than it should be, or Overproduced.P competitive more points P socially efficient quantity
.5. We can make the market consider this negative externalities (Internalized Externalities) from the correction
(Remedy) from both the government and the private sector, the Government Council The government can also collect taxes (Tax),
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