The Basic Reason That a Competitive Unregulated Market Produces an Inefficient

Multiple Choice

The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because

A) producers cannot measure marginal social cost.
B) producers do not pay the external cost.
C) the general public does not care about external costs.
D) external costs are not a political issue.
E) the external cost is paid by consumers rather than producers.