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When Producers (Say, of Roads) Are Not Able to Make

Question 219

Multiple Choice

When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads) , they tend to see a


A) marginal cost of production that is too low, and there is a supply-side market failure.
B) marginal benefit of production that is too high, and there is a demand-side market failure.
C) marginal cost of production that is too high, and there is a supply-side market failure.
D) marginal benefit of production that is too low, and there is a demand-side market failure.

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