a value to consumers of $3.70 Refer to Scenario 10-1. From the given information, it is apparent that a. the production of gasoline involves a negative externality, so the market will produce a smaller quantity of gasoline than is socially desirable. b. the production of gasoline involves a positive externality, so the market will produce a smaller quantity of gasoline than is socially desirable. c. the production of gasoline involves a positive externality, so the market will produce a larger quantity of gasoline than is socially desirable. d. the production of gasoline involves a negative externality, so the market will produce a larger quantity of gasoline than is socially desirable.

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