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:

Description

The act of giving a detailed account or explanation about someone or something.

Moved Away

The act of leaving a specific place or position to go to another location.

First Day

The initial day of a particular period or event.

Conclusion

A conclusion is a statement in an argument that logically follows from the premises offered in support of it; it's what the argument is trying to prove or establish.