$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Output $\backslash \backslash$

$($Units$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Marginal Social $\backslash \backslash$

Benefit $\backslash \backslash$

$($dollars$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Marginal Private $\backslash \backslash$

Cost $\backslash \backslash$

$($dollars$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Marginal Social $\backslash \backslash$

Cost $\backslash \backslash$

$($dollars$)$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $0$ & $80$ & $0$ & $20\backslash \backslash$

$\backslash$hline $1$ & $70$ & $10$ & $30\backslash \backslash$

$\backslash$hline $2$ & $60$ & $20$ & $40\backslash \backslash$

$\backslash$hline $3$ & $50$ & $30$ & $50\backslash \backslash$

$\backslash$hline $4$ & $40$ & $40$ & $60\backslash \backslash$

$\backslash$hline $5$ & $30$ & $50$ & $70\backslash \backslash$

$\backslash$hline $6$ & $20$ & $60$ & $80\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

QUESTION $8$

$(4$ Marks

Given in the table are the marginal private cost $($MPC$)$ and the marginal social cost $($MSC$)$ of the production of coal and the marginal social benefit from the consumption of coal. What is the optimal level of coal production for society?

A$.$ marginal social cost is $=$ marginal private cost $\backslash (=4\backslash )$ units of output

B$.0$ units of output because production causes pollution

C$.$ the highest quantity produced, $6$ units is the efficient quantity

D$.3$ units of output