In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question. 
Which of the following statements is true?
A) The MPC of production is greater than the MSC of producing the good.
B) The quantity of the good produced in the market will be higher than the socially optimal
C) For the market to produce the socially optimal level of output, the government should provide a subsidy.
D) There is a positive externality associated with the production and consumption of this
Correct Answer:
Verified
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