0:29:52 Eva ONDONGO NGALA: Attempt 1 Page 1: H The social costs include private costs of production that a producer incurs and the of pollution that pass on to society. market-oriented When there is the private market does not achieve efficient output, tax because either firms do not account for all costs incurred in the production of output and/or consumers do not account pollution charge for all benefits obtained . Laws that specify allowable quantities of external costs pollution and which also may detail which pollution-control technologies companies must use, fall under the externality category of command-and-control The of reducing pollution increases with output cap-and-trade A pollution charge is a imposed on the quantity of pollution that a firm emits. marginal cost N environmental policies create inflexible incentives for firms to reduce pollution