Use the Following to Answer Question(s): Correcting for Market Failure

Multiple Choice

Use the following to answer question(s) : Correcting for Market Failure: Imperfect Competition

-(Exhibit: Correcting for Market Failure: Imperfect Competition) If the government intervenes to induce the imperfectly competitive firm shown in this exhibit to produce at the efficient level of output, the net gain will be area:

A) RUVW minus VNM.
B) TUV.
C) NVM.
D) WVMZ.