If a Negative Externality Exists, Then There Is a __________

question 166

Multiple Choice

If a negative externality exists, then there is a __________ when society produces the market output instead of the socially optimal output. This exists because the __________ to sellers and third parties are __________ the __________ derived by buyers.

• A)net social benefit; costs; greater than; benefits
• B)net social cost; benefits; less than; costs
• C)net social cost; costs; greater than; benefits
• D)net social cost; costs; less than; benefits
• E)none of the above