The presence of negative externalities leads to a misallocation of societal resources because a. whenever external costs

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The presence of negative externalities leads to a misallocation of societal resources because

a. whenever external costs are imposed on outside parties, the good should not be produced at all.

b. less of the good than is ideal for society is produced.

c. some costs are associated with production that the producer fails to take into consideration.

d. the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.

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