When Positive Externalities Are Involved, the Market Is Said to

Multiple Choice

When positive externalities are involved, the market is said to

A) fail, because it underproduces the good connected with the positive externality.
B) fail, because it overproduces the good connected with the positive externality.
C) succeed, because it produces the socially optimal quantity of the good connected with the positive externality.
D) be "in optimum," because the equilibrium fully adjusts for the positive externality.