A local bar provides free pretzels and peanuts and cheap drinks on a Monday night. But soon a fight breaks out in the parking lot between two quarreling patrons. Neighboring homeowners awaken as a result, and call the police

What can we clearly conclude? A) The bar's free pretzels and peanuts generate a positive externality.
B) Each fighter imposes a negative externality on the other fighter.
C) The fighters impose a negative externality on the neighboring homeowners.
D) The neighboring homeowners impose a negative externality on the police.
E) All of the above are true.

C