If a Government Action Is Designed to Achieve Efficiency,then the Action

Multiple Choice

If a government action is designed to achieve efficiency,then the action must have the market produce the amount of output so that the

A) marginal private cost equals the marginal private benefit.
B) marginal social cost equals the marginal social benefit.
C) marginal external cost equals the marginal external benefit.
D) marginal private cost equals the tax.
E) marginal social benefit exceeds the marginal social cost by as much as possible.