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

Multiple Choice

Which step is omitted from the three-step recipe used to analyze externalities in Table 2? (Note: The steps are not necessarily in order.)
$$\begin{array} { | l | } \hline \text { Table 2: Steps in the Three-Step Recipe to Analyze Externalities } \\\hline \text { Assess the externalities. } \\\hline \text { Predict the equilibrium outcome. } \\\hline\end{array}$$

A) Predict the degree of market power.
B) Find the socially optimal outcome.
C) Determine the level of exploitation.
D) Determine the current role of the public sector.