The Following Figure Shows the Private Cost and Social Cost

Multiple Choice

The following figure shows the private cost and social cost of producing Good X.

-Refer to the figure above.Which of the following statements is true in this case?

A) P₁ is the socially optimal price for Good X.
B) P₂ is the price of Good X in a free market.
C) Q₂ units is the efficient level of output of Good X.
D) Q₂ units is the quantity supplied of Good X in a free market.