If the Production of a Certain Commodity Generates External Benefits

Multiple Choice

If the production of a certain commodity generates external benefits for those who do not participate directly in the production process,then:

A) too large a quantity of the good will be produced.
B) at equilibrium,the marginal social benefit is less than the cost of producing an extra unit.
C) the government can subsidize consumption of the good and improve efficiency.
D) a government intervention in this market will cause the marginal social benefit to exceed the marginal social cost.