In the Case of a Negative Externality, Social Marginal Cost

Multiple Choice

In the case of a negative externality, social marginal cost:

A) Exceeds private marginal cost.
B) Equals private marginal cost.
C) Is less than private marginal cost.
D) Is not related to private marginal cost.
E) It is not possible to answer this question without additional information about the structure of the industry.