The Environmental Protection Agency (EPA) has warned the perfectly competitive Company X that if it produces more than the socially efficient quantity, then it will get shut down. Company X has a marginal cost function MC = 10Q and faces a perfectly elastic demand P = $100. Every unit Company X produces yields 100 dollars worth of air pollution. Which of the following is true? (Note: you may ignore fixed costs).

A. Company X should produce zero units to satisfy the EPAs demands.

B. Company X should produce half of its profit maximizing output.

C. The Social Marginal Cost is modeled as 110Q.

D. None of the answers is correct

why is c not correct and a correct?