Multiple Choice
Refer to the below supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are) :
A) positive externalities to the production of this product.
B) negative externalities to the production of this product.
C) an overallocation of resources to the production of this product.
D) a negative externality from the production of this product.
Correct Answer:

Verified
Correct Answer:
Verified
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