A perfectly competitive manufacturing industry pollutes public water in its production process, leaving the water unsuitable for use by the surrounding communities. At the market equilibrium output level, which of the following is true?

(A) Marginal private cost exceeds marginal social cost.
(B) Marginal private cost exceeds marginal private benefit.
(C) Marginal social cost exceeds marginal social benefit.
(D) The market equilibrium output is equal to the socially efficient output.
(E) The market equilibrium output is less than the socially efficient output.

The measure of an economic adopted

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