Figure: Correcting for Market Failure (Figure: Correcting for Market

question 37

Multiple Choice

Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the market illustrated in the figure Correcting for Market Failure.When the government intervenes to correct for the external cost, the output will ________ from ________ to _.

• A)fall; W; R
• B)increase; W; R
• C)fall; R; W
• D)fall; W; 0

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Definitions:

Initiation Rite

A formal ceremony or series of actions conducted to induct an individual into a new role, status, or society.

New Status

A term indicating an updated or changed position, condition, or standing of an individual, group, or entity within a social, economic, or relational context.

Virtual Communities

Are bounded patterns of interaction and exchange that exist online, independently of time and space.

Computer-Mediated Communities

Online communities formed through the use of computers and internet technologies, allowing people to communicate and share interests across geographical boundaries.