When a Producer Does Not Internalize the Negative Externality Associated

Multiple Choice

When a producer does not internalize the negative externality associated with the production of a good,then:

A) the socially optimal quantity of output must be larger than the market output.
B) the socially optimal quantity of output must be less than the market output.
C) the socially optimal quantity of output must be equal to the market output.
D) the socially optimal quantity of output can be either larger or smaller than the market output.