Economics Question on efficiency efficiency, quantity, benefits, likely, market

optiix

In the market economy, if a good has external benefits it is least likely to lead to:
A. a social loss.
B. a deadweight loss.
C. overproduction of the good.
D. an inefficient quantity being produced
The answer in the book is given as C, but I think its D.
Can anyone explain me why?

NakedPuts

Oops, I did not read the question properly, It saysleast likely. I thought it was the other way

waldziuchna

It is C because external benefits generate less than efficient quantities of quantity produces and consumed. In essence, the presence of external benefits cause underproduction of a good, not overproduction. At least, this is how I understood the concept.