Which of the Following Statements Is NOT True

Multiple Choice

Which of the following statements is NOT true?

A) If the production of a good involves a negative externality, then the equilibrium quantity with free markets is greater than the socially optimal level.
B) If the production of a good involves a negative externality, then at the free-market equilibrium the marginal private cost is equal to the marginal private benefit.
C) If the production of a good involves a negative externality, then the free-market equilibrium creates a deadweight loss.
D) If the production of a good involves a negative externality, then at the free-market equilibrium the marginal social cost is less than the marginal social benefit.