Figure: Market Failure (Figure: Market Failure) Look at the Figure

question 132

Multiple Choice

Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.How much is Ann willing to pay for E street lights?

• A)0
• B)A
• C)B
• D)C

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Definitions:

Brown Fat

A type of body fat that is activated when cold, burning calories to generate heat and help maintain body temperature, containing more mitochondria than white fat.

Peripheral Vasoconstriction

The narrowing of blood vessels in the peripheral parts of the body, a process that helps regulate blood pressure and body temperature.

Ethanol

A type of alcohol used as a fuel, solvent, and in alcoholic beverages.

ADH

Antidiuretic hormone (ADH), a hormone produced by the pituitary gland that regulates water balance in the body by controlling the concentration of urine.