Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A. output will be at a lower level than if all costs are not taken into account.
B. output will be at a lower level than the socially optimal level.
C. the marginal private cost curve will lie above and to the left of the marginal social cost curve.
D. a and b
E. a, b, and c
Answer: A
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