Consider an Industry Producing Good X

Multiple Choice

Consider an industry producing good X.The quantity of good X produced in a competitive free market will be less than the socially optimal level if

A) the consumption of good X generates a negative externality.
B) the consumption of good X generates a positive externality.
C) the production of good X generates a negative externality.
D) the government is subsidizing the production of good X.
E) good X has negative third party effects associated with its consumption.