Suppose the Socially-Optimal Quantity of Good X Is 2,500 Units

Multiple Choice

Suppose the socially-optimal quantity of good x is 2,500 units and the market-equilibrium quantity of good x is 3,000 units. When 2,500 units of good x are produced, the

A) external cost of good x exceeds the private value of good x.
B) external cost of good x equals the private value of good x.
C) social cost of good x exceeds the private value of good x.
D) social cost of good x equals the private value of good x.