Question

Suppose electricity generates a negative externality in production.

If​ so, then

 

A. the marginal social benefit of electricity is less than the marginal private benefit.

 

B. the marginal social cost of electricity equals the marginal social benefit.

 

C. the marginal social cost of electricity equals the marginal private cost.

 

D. the marginal social cost of electricity is greater than the marginal private cost.

 

E. the marginal social cost of electricity is less than the marginal private cost.