When Production of a Good Generates External Costs, the

Multiple Choice

When production of a good generates external costs, the

A) demand curve for the good will overstate the true social benefits from consumption of the good.
B) demand curve for the good will understate the true social benefits from consumption of the good.
C) supply curve for the good will overstate the true social cost of producing the good.
D) supply curve for the good will understate the true social cost of producing the good.