If society is experiencing a net social cost from the production of a good, this implies that
A)the socially optimal level of output is being produced and society is willing to accept the costs that result.
B)producers would rather produce the output at which marginal social cost equals the demand for the good.
C)negative externalities are involved in the production of this good.
D)none of the above

Question

Quizplus · Accepted Answer

Negative externalities are costs imposed on a third party when goods and services are produced and consumed. If society is experiencing a net social cost, it implies that there are negative externalities involved in the production of the good, as these external costs are not being fully accounted for by the producers.

If Society Is Experiencing a Net Social Cost from the Production