-Refer to the Diagram Above

Multiple Choice

-Refer to the diagram above.The vertical distance between the private MC and the social MC represents

A) excess demand due to prices set too high.
B) excess demand due to prices set too low.
C) the per-unit external cost of production not picked up by the producing firm.
D) the per-unit external cost of production picked up by the consumers.
E) the per-unit external cost of production picked up by the government in the form of taxes.