S Price Q, Q. 27 Quantity 69. Refer to the above diagram of the market for product X. Curve S, embodies all costs (including externalities) and D, embodies all benefits (including externalities) associated with the production and consumption of X. Assuming the market equilibrium output is O, we can conclude that the existence of external: A. costs has resulted in an overallocation of resources to X. B. benefits has resulted in an overallocation of resources to X. C. costs has resulted in an underallocation of resources to X. D. benefits has resulted in an underallocation of resources to X