Multiple Choice O an output greater than G would result in a more efficient allocation of resources. O government should levy a per unit excise tax on Z to shift the demand curve toward D an output smaller than G would improve resource allocation. O efficient resource allocation occurs at output G and price # because the market mechanism does not measure all benefits.51 Price B 0 G Quantity Refer to the competitive market diagram for product Z. Assume that the current market demand and supply curves for Z are D2 and $2. If there are substantial external benefits associated with the production of Z, then