Except there’s an obvious failure of the market when the true cost of something is not borne by the producer or the consumer. Negative externalities lead to an

Except there’s an obvious failure of the market when the true cost of something is not borne by the producer or the consumer. Negative externalities lead to an overproduction and overconsumption of goods or services because the market price does not reflect the true social costs. Which can have detrimental effects on society and the environment. Not to mention the misallocation of resources that one day we may well bitterly regret.