Use the Table Below to Answer the Following Questions

question 114

Multiple Choice

Use the table below to answer the following questions.
Table 16.3.1

-Refer to Table 16.3.1. The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. If production is left to the private market, then

• A)an efficient quantity is produced.
• B)imposing a tax leads to production of the efficient quantity.
• C)too much fertilizer is produced.
• D)a system of pollution permits leads to production of the efficient quantity.
• E)an inefficient quantity is produced.