Producing Paper Creates Pollution

Multiple Choice

Producing paper creates pollution.There is no externality in the consumption of paper.The efficient quantity of paper produced occurs when the

A) marginal social benefit from paper is equal to zero.
B) marginal social cost of the pollution from making paper is equal to zero.
C) marginal private cost of the pollution from making paper is equal to zero.
D) marginal private cost of paper equals the marginal private benefit from paper.
E) marginal social benefit from paper is equal to the marginal social cost of paper.