When the Government Decides to Dredge a Bay to Let

Multiple Choice

When the government decides to dredge a bay to let big ships into the port, they are causing:

A) a positive externality because the dredging will allow more of the bigger ships into the bay
B) a positive externality because the dredging will create profit for the dredging company
C) a negative externality because marine life will be displaced by the dredging
D) a negative externality because the dredging will take a long time to complete