Consider an Oil Company Extracting Oil from the Tar Sands

Consider an oil company extracting oil from the Tar Sands in Northern Alberta. The production process generates greenhouse- gas emissions. At the socially efficient level of oil extraction,

A) the marginal cost of the emissions will be equal to the social marginal benefit derived from the extracted oil.
B) the level of emissions will be zero.
C) the marginal cost of the emissions will be more than the social marginal benefit derived from the extracted oil.
D) the social marginal cost of the oil extraction will be equal to its social marginal benefit.
E) the social marginal cost of the oil extraction will exceed its social marginal benefit.