Question

question 1
when a negative externality exists, the private market produces
less than the economically efficient output level.
products at a high opportunity cost.
more than the economically efficient output level.
products at a low opportunity cost.

Explanation:

Negative externalities occur when the production or consumption of a good imposes costs on third - parties not involved in the transaction. In a private market, producers only consider their private costs (not the external costs). The socially optimal (economically efficient) output level is where marginal social cost (private cost + external cost) equals marginal social benefit. Since private producers ignore external costs, they produce more than the level where marginal social cost equals marginal social benefit.

Answer:

more than the economically efficient output level.