Suppose the Production of a Good Results in Negative Externalities

Multiple Choice

Suppose the production of a good results in negative externalities. If all costs are taken into account, then

A) output will be at a lower level than if all costs are not taken into account.
B) output will be at a lower level than the socially optimal level.
C) the marginal private cost curve will lie above and to the left of the marginal social cost curve.
D) a and b
E) a, b, and c