Multiple Choice
Use the following to answer question(s) : Correcting for Market Failure: External Cost
-(Exhibit: Correcting for Market Failure: External Cost) Assume that there is an external cost involved, as illustrated in the exhibit.If the government intervenes to correct for the external cost, the new _______ will now reflect _______ and _______ cost.
A) supply curve S₁; private; external
B) supply curve S₂; private; no external
C) supply curve S₂; private; external
D) demand curve (not shown) ; external; no private
Correct Answer:
Verified
Correct Answer:
Verified
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