A Commonality Between Externalities and Public Goods Is That

Multiple Choice

A commonality between externalities and public goods is that:

A) in each case, markets are not likely to allocate resources efficiently, even though they might otherwise be competitive.
B) in each case, government agency intervention would create inefficiency compared to the market solution.
C) competitive markets are likely to be efficient in each case.
D) the invisible hand (as discussed by Adam Smith) is likely to lead to efficiency in each case.