With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be greater than the socially optimal quantity. Which of the following generate the type of externality previously described? Check all that apply. Alex has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season. Your roommate Clancy has bought a bird that keeps you up at night with its chirping. The city where you live has granted a permit to put a movie theater in your neighborhood, causing traffic jams at night and on weekends. A leading software company has decided to increase its research budget for inventing new open-source technologies