Which of the following statements about externality is INCORRECT? A)

Which of the following statements about externality is INCORRECT?

A) Pollution of a chemical plant will create negative externalities to the residents living in the neighborhood.
B) Trees planted in the backyard of a house could create positive externalities to the pedestrians passing under.
C) Extra output sold by a firm that lowers the market price creates negative externalities to its rivals.
D) A single action may confer positive externalities on some people, but negative externalities on others.

ANSWER

C