In What Sense Do Externalities Cause the "Invisible Hand" of the Marketplace

Multiple Choice

In what sense do externalities cause the "invisible hand" of the marketplace to fail?

A) Externalities lead to government intervention in markets, which exacerbates the problems associated with externalities.
B) Externalities result in prices that are too high for many consumers to pay.
C) Markets fail to produce the maximum total benefit to society when positive or negative externalities are present.
D) Markets produce too little of a good when positive or negative externalities are present.