Suppose the Production of a Good Results in Negative Externalities

Multiple Choice

Suppose the production of a good results in negative externalities. If society produces the output consistent with the intersection of the demand curve and the marginal private cost curve, then

A) the socially optimal level of output will be produced.
B) society will incur a net social cost.
C) society will want more output produced, and producers will be willing to satisfy this desire at a price that society deems acceptable.
D) There is not enough information provided to answer this question.