Exhibit 17.2 -Refer to Exhibit 17.2,which Shows Equilibrium in a Market in in a Market

Multiple Choice

Exhibit 17.2

-Refer to Exhibit 17.2,which shows equilibrium in a market in the presence of an externality.The amount by which the total social cost of producing the private equilibrium level of output exceeds the total social benefit is _____

A) $3,000.
B) $1,000.
C) $5,000.
D) $1,600.
E) $1,400.