If There Are Costly Negative Externalities Associated with an Economic

Multiple Choice

If there are costly negative externalities associated with an economic activity and that activity is carried out until the (private) marginal benefit equals the (private) marginal cost,then ________.

A) this activity should be subsidized
B) the social marginal net benefit is positive
C) the private cost exceeds social costs
D) too many resources are being allocated to this activity