Scenario: the Following Figure Shows the Private Cost and Social

Multiple Choice

Scenario: The following figure shows the private cost and social cost of producing Good X. Firm A is the producer of Good X. The production plant and Bob's house are located next to a river. However, the plant is upstream, and Bob's house is downstream. Since production pollutes the river, Bob suffers from a negative externality.

-Refer to the scenario above.What is the value of the negative externality imposed on Bob when the firm produces the socially optimal quantity?

A) (b d) e
B) (a c) f
C) d e
D) c f