Answer:
B. lower than
Explanation:
As orange has a positive externality which cannot be included in the cost, the social optimal will be lower. That's because, neither the consumer will pay to benefit the entire society a higher price than their marginal utility or the producer produce when marginal cost exceed the marginal revenue
The government should try to subsidize the market to allow for a hiher quantity of organge an achieve the socially optinal quantity.
