What's the correct answer?

n Price MSC C B MPC PB - - - - - ID Pp - - -- A MSB - - - - - Q B QP Quantity The graph above depicts the marginal social cost (MSC), marginal private cost (MPC), and marginal social benefit (MSB) associated with the production of a good that generates an externality. Based on the information in the graph, which of the following is true? A There is a positive externality because, relative to the socially optimal output, too little is produced in an unregulated market. The unregulated market produces QB and sets price at P B. The allocationy efficient level of output is Qp. D The good generates an external benefit equal to AB. here is a negative externality because marginal social cost exceeds marginal private cost