Suppose that at current production levels, Bad Boy & Sons finds its marginal cost to be $12, its marginal external cost to be $2, and its marginal social benefit to be $15. In this case the company:
A.	should be encouraged to expand production.
B.	should be encouraged to decrease production.
C.	should not change production levels.
D.	is producing more than the efficient level of output.
Answer:A
Suppose that at current production levels, Bad Boy & Sons finds its marginal cost to be $12, its marginal external cost to be $2, and its marginal social benefit to be $15. In this case the company:
A.	should be encouraged to expand production. B.	should be encouraged to decrease production. C.	should not change production levels. D.	is producing more than the efficient level of output.