Which of the following statements accurately describe the implications of negative externalities on market efficiency? Select all that apply.

Negative externalities occur when a person's or company's actions have harmful effects on others who are not involved in the decision. This can lead to market inefficiency because the true cost of a product or service is not reflected in its price. For example, if a factory pollutes a river while producing goods, the cost of pollution is not included in the price of those goods, making them seem cheaper than they really are. As a result, more of these goods are produced and consumed than is socially optimal, leading to overproduction and harm to the environment. Therefore, negative externalities can cause resources to be misallocated, resulting in a loss of overall economic well-being.