a. When negative externalities exist in a market, 0 equilibrium output will be greater than the efficient price. '0 equilibrium price will be less than the efficient output. 0 equilibrium output will be less than the efficient output. 0 equilibrium output will be greater than the efficient output. b. The government could correct these divergences between equilibrium output and efficient output by O shifting the demand curve down. 0 imposing regulations that force firms to externalize the internal costs. 0 imposing regulations that force firms to internalize the external costs. c. An example of an external benefit is O second-hand smoke. O the safety provided by motion-detector lights. 0 loud noise from your neighbor. O pollution