An Externality Exists When

An externality exists when

A) the benefits from consuming the service affect only the purchasers of that service.
B) every person in a market system has a chance to influence how much of a product should be produced.
C) the price of the private transaction does not reflect all the costs of the items involved in that transaction.
D) the costs of producing a service affect only the sellers of that service.
E) only the buyers and sellers are affected by the production of a product or service.