The Table Below Shows the Payoff (Profit) Matrix of Firm

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-When a private transaction imposes costs on others not directly involved in the transaction, _____.

A) a negative externality exists
B) a positive externality exists
C) the good involved in the transaction is a club good
D) the tragedy of commons problem arises
E) a free rider problem arises