In a market experiencing negative externalities, how do private costs differ from social costs?

In a market with negative externalities, private costs are the expenses that individuals or businesses directly face when producing or consuming goods. For example, a factory might spend money on materials and labor to produce products, which represents its private costs. However, social costs include the overall impact on society, which can include pollution or health issues caused by the factory's operations. This means that social costs are usually higher than private costs because they account for the negative effects on the environment and public health that the factory does not pay for. Therefore, when private costs do not reflect these additional social costs, it can lead to overproduction and harm to society.