The Table Below Shows the Payoff (Profit) Matrix of Firm

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-Which of the following statements is true?

A) In the case of positive externalities, a private market will produce too little of a good compared to the socially efficient level of output.
B) In the case of positive externalities, a private market will produce too much of a good compared to the socially efficient level of output.
C) Negative externalities occur when benefits accrue to individuals not directly involved in a transaction.
D) Positive externalities occur when costs are imposed on individuals not directly involved in a transaction.
E) In the case of negative externalities, a private market will produce too little of a good compared to the socially efficient level of output.