If the Government Overcorrected in a Situation of External Costs

Multiple Choice

If the government overcorrected in a situation of external costs

A) ​More than the efficient amount of the good would end up being produced.
B) ​Less than the efficient amount of the good would end up being produced.
C) ​It would result in a welfare cost in that market that was bigger than the initial welfare cost.
D) Both a and c are would result.