Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the market illustrated in the figure Correcting for Market Failure.Economists argue that in an unregulated private market, is produced.In the figure, the supply curve (S1) reflects
________ cost.
A)too little; private
B)too much; private
C)too much; external
D)too little; external and private

Question

Figure: Correcting for Market Failure  (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the market illustrated in the figure Correcting for Market Failure.Economists argue that in an unregulated private market, is produced.In the figure, the supply curve (S1) reflects
________ cost.
A)too little; private 
B)too much; private 
C)too much; external 
D)too little; external and private

Quizplus · Accepted Answer

The Answer of Figure: Correcting for Market Failure  (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the market illustrated in the figure Correcting for Market Failure.Economists argue that in an unregulated private market, is produced.In the figure, the supply curve (S1) reflects
________ cost.
A)too little; private 
B)too much; private 
C)too much; external 
D)too little; external and private