When a Good Causes Positive External Benefits to Accrue to Third

Multiple Choice

When a good causes positive external benefits to accrue to third parties, an unfettered market will

A) under-allocate resources to the good causing the benefit.
B) over-allocate resources to the good causing the benefit.
C) cause the equilibrium quantity, established before the benefit is taken into account, to be produced more efficiently.
D) eliminate such goods.