Consider Two Goods--One That Generates External Benefits and Another That

Multiple Choice

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce

A) too much of both goods.
B) too little of both goods.
C) too much of the good that generates external benefits and too little of the good that generates external costs.
D) too little of the good that generates external benefits and too much of the good that generates external costs.