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Refer to the above diagram in which S is the market supply curve and S t is a supply curve comprising all costs of production,

Refer to the above diagram in which S is the market supply curve and St is a supply curve comprising all costs of production, including external costs. Assume that the number of people affected by these external costs is large. Without government interference, this market will result in:
A) an overallocation of resources to this product.
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