If Negative Externalities Are Created in the Production of a Good

Multiple Choice

If negative externalities are created in the production of a good, then society will:

A) ​produce too much of the good since the marginal private cost to firms is less than the marginal social cost.
B) ​produce too little of the good since the marginal private cost to firms is less than the marginal social cost.
C) ​produce too much of the good since the marginal private cost to firms is greater than the marginal social cost.
D) ​produce too little of the good since the marginal private cost to firms is greater than the marginal social cost.