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When spillovers cause substantial positive benefits to accrue to third parties, a competitive market: A

Marketing

When spillovers cause substantial positive benefits to accrue to third parties, a competitive market:

A.underallocates resources to the production of the good.

B.overallocates resources to the production of the good.

C.is allocatively efficient.

D. compensates people for the value of the benefits which accrue to these third parties.

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