A market economy will produce _____ without any government regulation.

A) too little pollution
B) too much pollution
C) the socially optimal amount of pollution
D) the amount of pollution that maximizes total surplus

In a market economy, producers are primarily interested in maximizing their profits. Therefore, they may choose to produce goods and services in ways that are harmful to the environment and do not take into account the negative externalities of their actions (such as pollution). Without any government intervention, there would be no regulation on the amount of pollution produced, leading to an overproduction of pollution and ultimately harming society.