Suppose the Actions of the Producers of a Good Impose

Multiple Choice

Suppose the actions of the producers of a good impose an external cost which results in the actual market price of $18 and market output of 400 units. How does this outcome compare to the efficient, ideal equilibrium?

A) The efficient price would higher than $18 while the efficient output would be less than 400 units.
B) The efficient price would be higher than $18 while the efficient output would be greater than 400 units.
C) The efficient price would be lower than $18 while the efficient output would be less than 400 units.
D) The efficient price would be lower than $18 while the efficient output would be greater than 400 units.