Pig Pen Industries is currently producing 5000 tons of paper per day. At this level of production, marginal social costs are $10 per ton while marginal social benefits are $12 per ton. We know that Pig Pen:
A.	is producing efficiently.
B.	is producing an amount less than the efficient amount.
C.	is producing an amount greater than the efficient amount.
D.	could increase net benefits for society by increasing production.
Answer:C
Pig Pen Industries is currently producing 5000 tons of paper per day. At this level of production, marginal social costs are $10 per ton while marginal social benefits are $12 per ton. We know that Pig Pen:
A.	is producing efficiently. B.	is producing an amount less than the efficient amount. C.	is producing an amount greater than the efficient amount. D.	could increase net benefits for society by increasing production.