Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Correcting for Market Failure
-(Figure: Correcting for Market Failure) There is an external cost in the market illustrated in the figure Correcting for Market Failure. 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