Multiple Choice
Use the following to answer question:
Figure: Correcting for Market Failure
-(Figure: Correcting for Market Failure) Use Figure: Correcting for Market Failure.There is an external cost in the market illustrated in the figure,and the two upward-sloping lines reflect private and social marginal costs.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
Correct Answer:

Verified
Correct Answer:
Verified
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