What Step Is Omitted from the Three-Step Recipe Used to Analyze

Multiple Choice

What step is omitted from the three-step recipe used to analyze externalities in Table 1?
$$\begin{array} { | l | } \hline \text { Table 1: Steps in the Three-Step Recipe to Analyze Externalities } \\\hline \text { Assess the externalities. } \\\hline \text { Find the socially optimal outcome. } \\\hline\end{array}$$

A) Predict the degree of market power.
B) Determine the level of exploitation.
C) Predict the equilibrium outcome.
D) Determine the role of the public sector.