Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Market Failure
-(Figure: Market Failure) Look at the figure Market Failure. Suppose it represents the demand for and marginal cost per pound of shrimp in the bay. The additional cost of the shrimp due to the depletion of the common resource is equal to AC. The output of F is _____ because the marginal social benefit is _____ the marginal cost.

A) efficient; equal to
B) efficient; greater than
C) inefficient; greater than
D) inefficient; less than