-The Figure Above Shows the Market for a Good with an External

Multiple Choice

-The figure above shows the market for a good with an external benefit.The efficient level of production is ________ units because ________.

A) 8; marginal benefit equals marginal cost
B) 8; marginal cost is less than marginal social benefit
C) 10; marginal cost equals marginal social benefit
D) 10; marginal social benefit exceeds marginal benefit
E) 8; marginal benefit equals the marginal external benefit