Use the Following Figure to Answer the Question : Figure

Multiple Choice

Use the following figure to answer the question : Figure 20-1 : D₁ and S₁ are the private demand and supply curves,of a commodity produced by a competitive firm.S₂ reflects the social marginal cost of production,while S₀ represents the external marginal cost.
-Refer to Figure 20-1.A comparison between the efficient outcome and the market equilibrium reveals that:

A) the price level when the outcome is efficient is higher than the price at the market equilibrium by $30.
B) the price level when the outcome is efficient is lower than the price at the market equilibrium by $10.
C) the price level when the outcome is efficient is lower than the price at the market equilibrium by $40.
D) the price level when the outcome is efficient is higher than the price at the market equilibrium by $20.