Answer the Next Two Questions on the Basis of the Following

Answer the next two questions on the basis of the following diagram:

-If MSC is marginal social cost and MSB is marginal social benefit, then:

A) the optimal level of government intervention is Q₀
B) no conclusion can be reached
C) society should choose Q₁ level of government intervention
D) at Q₂ marginal social cost is less than marginal social benefit