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Meaning of overproduction

 

 

 

Overproduction

 

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Business glossary

 

Meaning of term overproduction :

 

Overproduction is when production is above the socially optimum level. This will often occur where the production of a good results in negative externalities. These external costs (e.g. pollution) will not be taken into account by the market and this will mean that more of the good is produced than is socially desirable.

 

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Overproduction

 

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Meaning of term overproduction

 

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