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, there will be a(n) ________ in _______ of _______ .
A) decrease; benefit; WTVR
B) increase; cost; WTUR
C) decrease; net benefit; TUV
D) increase; deadweight loss; TUV
Correct Answer:
Verified
Correct Answer:
Verified
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