Suppose That the Purchase of a Good Creates a Positive

Multiple Choice

Suppose that the purchase of a good creates a positive marginal external benefit. Given this, which of the following statements is NOT true?

A) The marginal social benefit from purchasing the good will be greater than marginal private benefit.
B) The free-market equilibrium quantity of the good purchased will be less than the social optimal.
C) The government can reach the socially optimal level by taxing the purchase of the good.
D) The purchase of the good creates a positive externality.