When the production of a good entails spillover benefits, too much of it is produced and there is an over-allocation of resources to its use.

Name: When the production of a good entails spillover benefits, too much of it is produced and there is an over-allocation of resources to its use.
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When the production of a good entails spillover benefits (positive externalities), too little of it is produced from society's perspective, leading to an under-allocation of resources to its use.

When the Production of a Good Entails Spillover Benefits, Too