Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. A Pigouvian tax of $10 will result in a quantity of pollution for which the:

A) marginal social benefit is less than the marginal social cost.
B) marginal social benefit exceeds the marginal social cost.
C) marginal social benefit equals the marginal social cost.
D) resources are allocated efficiently.