Use the Following to Answer Question(s): Correcting for Market Failure

question 105

Multiple Choice

Use the following to answer question(s) : Correcting for Market Failure: Imperfect Competition

-(Exhibit: Correcting for Market Failure: Imperfect Competition) If the government intervenes to induce the imperfectly competitive firm shown in this exhibit to produce at the efficient level of output, the gain will be the _______ under the _______ curve between ________ .

• A) area; supply; R and W
• B) area; demand; R and W
• C) vertical distance; demand; V and W
• D) vertical distance; supply ; V and W