In a market experiencing a negative externality, which of the following correctly describes the impact of government intervention aimed at aligning private costs with social costs?

In a market with a negative externality, like pollution from a factory, the private costs that the factory faces are lower than the social costs, which include the harm caused to the environment and public health. When the government intervenes, it aims to make the factory pay for the true cost of its actions, aligning private costs with social costs. This can be done through taxes or regulations that increase the factory's costs, encouraging it to reduce pollution. For example, if the government imposes a tax on each unit of pollution, the factory will think twice before producing as much, leading to a cleaner environment. Overall, this intervention helps ensure that the costs of production reflect the broader impact on society, promoting healthier outcomes for everyone.