-The Figure Above Shows the Market for Pants

Multiple Choice

-The figure above shows the market for pants.If the production of the pants results in an external cost from pollution that is the result of the dye used,then

A) 6 million pairs is the efficient quantity.
B) fewer than 6 million pairs is the efficient quantity.
C) more than 6 million pairs is the efficient quantity.
D) None of the above answers is necessarily correct because more information is needed about the size of the external cost.
E) None of the above answers is correct because it is impossible to tell whether the external cost results in underproduction or overproduction.