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

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.Economists argue that in an unregulated private market, is produced.In the figure, the supply curve (S1) reflects
________ cost.

A) too little; private
B) too much; private
C) too much; external
D) too little; external and private