Suppose that at current production levels, Big Dog Inc. estimates its marginal cost to be $25, its marginal external cost to be $10, and its marginal social benefit to be $35. In this case, the corporation:
A.	is imposing too much harm on the environment and should cut back production.
B.	is producing the efficient amount.
C.	is producing an amount less than the efficient amount.
D.	could make society better off by decreasing production.
Answer:B
Suppose that at current production levels, Big Dog Inc. estimates its marginal cost to be $25, its marginal external cost to be $10, and its marginal social benefit to be $35. In this case, the corporation:
A.	is imposing too much harm on the environment and should cut back production. B.	is producing the efficient amount. C.	is producing an amount less than the efficient amount. D.	could make society better off by decreasing production.