In the Case of Producing a Good with a Negative

Multiple Choice

In the case of producing a good with a negative externality, a firm will likely consider only the _____ marginal costs of production, leading to production of _____.

A) external; more output than is socially optimal
B) private; more output than is socially optimal
C) private; less output than is socially optimal
D) external; less output than is socially optimal