An External Diseconomy Results in a Socially Nonoptimal Use of a Resource

Multiple Choice

An external diseconomy results in a socially nonoptimal use of a resource because

A) the private costs exceed the social costs.
B) it prohibits economic growth.
C) the resource user does not bear the full cost of his or her actions.
D) firms will not maximize their profits.
E) too little of the resource will be used.