When Farmers Grow Apples, There Are a Number of External

Multiple Choice

When farmers grow apples, there are a number of external costs. In particular, apples not sold or picked in a timely fashion spoil and become rotten and thus generate methane gas. If the marginal external cost is $10 per bushel of apples, and the government imposes a tax of $20 per bushel of apples, then at the new equilibrium price and quantity of apples:

A) too few apples will be picked.
B) the price of apples will be less than the marginal social cost.
C) the price of apples will be less than the marginal social benefit.
D) the price of apples will be less than the marginal cost to apple farmers.