Arrange the following statements related to negative externalities in correct sequence

(A) There is an oil refinery which refines crude petroleum and sells it in the market
(B) Pollution harms well-being and also kills fish or other organisms
(C) Production the refinery may also be polluting the nearby river
(D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities

Choose the correct answer from the options given below:

(A), (C), (B), (D)

The correct answer is Option (2) → (A), (C), (B), (D)

• (A) There is an oil refinery which refines crude petroleum and sells it in the market (Sets up the economic activity/production).

• (C) Production the refinery may also be polluting the nearby river (Introduces the side-effect/cost of the activity).

• (B) Pollution harms well-being and also kills fish or other organisms (Describes the negative consequence or harm caused by the side-effect).

• (D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities (Provides the definition of the externality based on the described scenario).