Use the Following Diagram to Answer the Following Questions

Use the following diagram to answer the following questions.

-Refer to Diagram 10-1. When marginal social costs are equal to MSC1:

A) the equilibrium quantity < socially efficient quantity.
B) the equilibrium quantity > socially efficient quantity.
C) the equilibrium quantity = socially efficient quantity.
D) the argument for government subsidization is weaker than it would be if marginal social costs were equal to MSC2.