When Will Firms Produce an Output Level That Is Above

Multiple Choice

When will firms produce an output level that is above the socially efficient level?

A) when there are external costs of production equal to marginal benefits
B) when there are internal costs of production and firms do not have to account for them
C) when there are external costs of production and firms do not have to account for them
D) when there are external costs of production and firms have account for them