Which of the Following Is True of the Relationship Between

Multiple Choice

Which of the following is true of the relationship between marginal social cost (MSC) and marginal private cost (MPC) in the presence of a negative externality?

A) MSC equals the difference between MPC and the marginal external cost.
B) MSC is the product of MPC and the marginal external cost.
C) MSC is the sum of MPC and the marginal external cost.
D) MSC equals the sum of MPC and marginal abatement cost.