Figure: Market Failure (Figure: Market Failure) Look at the Figure Market Failure.Suppose It

question 52

Multiple Choice

Figure: Market Failure
(Figure: Market Failure) Look at the figure Market Failure.Suppose it represents the demand and marginal cost of pounds of shrimp in the bay.The additional cost of the shrimp due to the depletion of the common resource is equal to AC.Without government intervention, the price of shrimp will be per pound.

• A)0
• B)A
• C)B
• D)C

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than providing monetary compensation for failing to do so.

Contract Remedy

The legal means available to a party to enforce, redress, or protect their rights under a contract.

Rescission

The legal act of voiding a contract and returning the parties involved to their original positions, as if the contract had never been executed.

Parol Evidence Rule

This legal rule restricts the use of oral (parol) statements in court when interpreting a written contract.