Suppose That a Steel Factory Emits a Certain Amount of Air

Multiple Choice

Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,

A) the supply curve would adequately reflect the marginal social cost of production.
B) consumers will be required to pay a higher price for steel than they would have if the externality were internalized.
C) the market equilibrium quantity will not be the socially optimal quantity.
D) producers will produce less steel than they otherwise would if the externality were internalized.