A negative externality results from the sale of firewood in competitive markets. Then it follows that:
A) the marginal private cost of firewood is less than its marginal social cost.
B) the marginal private cost of firewood exceeds its marginal social cost.
C) the marginal private benefit of firewood is less than its marginal social benefit.
D) the marginal private benefit of firewood exceeds its marginal social benefit.
Correct Answer:
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