Negative externalities exist in a market for a good giving rise to a misallocation of resources.

Negative externalities exist in a market for a good giving rise to a misallocation of resources.

This misallocation is most likely to have resulted from

A. the product being over-priced.
B. over-production of the product.
C. too little consumption of the product.
D. too few resources devoted to producing the product.

The answer is over-production of the product.