Question

739. You are given the following statements about negative externalities associated with the production of a particular commodity. Which of them are generally truc? I) The marginal social cost of an increase in output exceeds the marginal private cost. II) Private markets will provide less output of this particular commodity than is socially desirable. III) Private firms will concentrate on private costs and ignore the cost burden they impose on others. (A) I only (B) II only (C) III only (D) I and II ((E) I and III (F) II and III (G) I and II and III (H) none of the above