Answer: D. Marginal benefit of production that is too low, and there is a demand-side market failure
When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
A. Marginal cost of production that is too low, and there is a supply-side market failure
B. Marginal benefit of production that is too high, and there is a demand-side market failure
C. Marginal cost of production that is too high, and there is a supply-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
Economics
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