Scenario: the Production of a Good Creates a Negative Externality

Multiple Choice

Scenario: The production of a good creates a negative externality. The following figure shows the market for this good.

-Refer to the scenario above.The socially optimal price for this good is ________,while the market price of it is equal to ________.

A) $14; $10
B) $20; $10
C) $20; $14
D) $14; $20