Exhibit 31-1 -Refer to Exhibit 31-1.If the Exhibit Represents a Negative Externality

Exhibit 31-1

-Refer to Exhibit 31-1.If the exhibit represents a negative externality situation,then what is Q₁?
A) It is the quantity of output at which marginal social costs (MPC).
b. It is the quantity of output at which MPC > MSC.
c. It is the market output; it is the quantity of output that exists if the external costs associated with the negative externality are not taken into account.
d. It is the socially optimal output; it is the quantity of output that exists if the external costs associated with the negative externality are taken into account.
e. none of the above