If a Perfectly Competitive Industry Is Not Forced to Take

Multiple Choice

If a perfectly competitive industry is not forced to take account of a negative externality it creates, it will produce where

A) the marginal cost of production equals the marginal private benefit.
B) the marginal cost of production equals the marginal social benefit.
C) the marginal social cost of production equals the marginal social benefit.
D) price equals marginal social benefit.