Consider a product (say, tulip bulbs) that generates positive externalities when it is consumed (other people enjoy looking at them). In this case,

Question 6 options:

at the market equilibrium, the price is too high to be allocatively efficient.

at the market equilibrium, the output would be greater than the socially optimal amount.

the government could tax the production of this good to improve efficiency.

too few tulips will be produced and consumed unless external benefits are internalized.

at market equilibrium, the marginal social benefit is less than the marginal cost of producing the last unit.