Suppose the Production of a Good Results in Negative Externalities

Multiple Choice

Suppose the production of a good results in negative externalities. If output is at the intersection of the demand curve and the marginal social 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 less 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 the question.