Unregulated Competitive Markets for Services with Negative Externalities, Such as Gambling

Unregulated competitive markets for services with negative externalities, such as gambling, tend to establish a price for the service that

A) is too low to support efficient use of scarce resources.
B) is too high to support efficient use of scarce resources.
C) supports efficient use of scarce resources.
D) provides a modest stipend for support of recovering addicts.