Correcting for Negative Externalities: Looking at an example of an oil refinery, the choose your answer.. curve represents how much the oil refinery will produce if it does not have to pay for the negative consequences of its production. In this example, the choose your answer.. curve accounts for only the internal or private costs of production. When a negative externality exists, the government may be able to restore choose your answer... by requiring the company to pay for the costs associated with their actions. To address this negative externality, the government can engage in actions that force the refinery to choose your answer.. the externality, meaning that the refinery must take into account the external costs to society that occur as a result of their production. This will result in a/an choose your answer... in the production of the pollution- causing activity. This will cause the supply curve to shift to the choose your answer... v . The new supply curve represents the choose your answer... . This will result in a social optimum position at a choose your answer... quantity and a choose your answer... V price than the market equilibrium