If the Value That Consumers Place on the 100th Unit

Multiple Choice

If the value that consumers place on the 100th unit of chocolate is $5, and the value of the resources used to produce that 100th unit is $2, to achieve an efficient allocation of resources

A) a $3 externality associated with chocolate production must be generated
B) a $3 externality associated with chocolate production must be eliminated
C) less resources should be allocated to chocolate production
D) more chocolate should be produced
E) less chocolate should be produced