Refer to the below diagram of the market for product X.Curve St embodies all costs (including spillovers) and Dt embodies all benefits (including spillovers) associated with the production and consumption of X.Assuming the equilibrium output is Q2,we can conclude that the existence of spillover: 
A) costs have resulted in an over-allocation of resources to X.
B) benefits have resulted in an over-allocation of resources to X.
C) costs have resulted in an under-allocation of resources to X.
D) benefits have resulted in an under-allocation of resources to X.
Correct Answer:
Verified
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