The Production of a Good Generates a Foul-Smelling Gas Which

Multiple Choice

The production of a good generates a foul-smelling gas which is released into air by factories producing the good.
-Refer to the scenario above. Which of the following statements is true?

A) The equilibrium quantity of the good produced in the market equals the socially optimal level.
B) The equilibrium price of the good produced in the market equals the socially optimal price.
C) The equilibrium quantity of the good produced in the market is likely to be less than the socially optimal level.
D) The equilibrium quantity of the good produced in the market is likely to exceed the socially optimal level.