The diagram below illustrates a positive externality. D is the marginal private benefit and D1 is the marginal social benefit. 
Referencing this diagram describe how a government can use direct regulation to eliminate the problem caused by the positive externality. What is a potential problem with this approach?
Definitions:
Product Design
The process of defining the appearance, functionality, and manufacturability of a product to be offered to consumers.
Social Loafing
A phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.
Synergy
The increased effectiveness that results when individuals, groups, or systems work together compared to when they operate separately.
Design a New Product
The process of creating a novel item or service that fulfills a specific consumer need or addresses a particular market niche.
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