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

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.At output F:

A) too much shrimp is being produced.
B) not enough shrimp is being produced.
C) the efficient amount of shrimp is being produced.
D) the socially optimum amount of shrimp is being produced.