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

Multiple Choice

What step is omitted from the three-step recipe to analyze externalities in Table 3? (Note: Steps are not necessarily in order.)
$$\begin{array} { | l | } \hline \text { Table 3: Steps in the Three-Step Recipe to Analyze Externalities } \\\hline \text { Predict the equilibrium outcome. } \\\hline \text { Find the socially optimal outcome. } \\\hline\end{array}$$

A) Predict the degree of market power.
B) Determine the level of exploitation.
C) Determine the role of the public sector.
D) Assess what externalities are involved.