For a Good Whose Production Creates an External Cost, the Efficient

Multiple Choice

For a good whose production creates an external cost, the efficient quantity of output is

A) where the market demand curve and the market supply curve intersect.
B) zero.
C) where the marginal social cost curve and marginal benefit curve intersect.
D) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
E) as low as possible.