The diagram shows the private and social costs and benefits of production in a free market that result in market failure. costs, benefits MSC KL M N MPB MPC MSB output Which change in output would be necessary to overcome this market failure? A from K to M B from M to N C from M to L D from N to L
The diagram shows the private and social costs and benefits of production in a free market that result in market failure. costs, benefits MSC KL M N MPB MPC MSB output Which change in output would be necessary to overcome this market failure? A from K to M B from M to N C from M to L D from N to L
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Why is option B correct?
![The diagram shows the private and social costs and benefits of production in a free market that
result in market failure.
costs,
benefits
O
MSC
KL M
N
MPB
MPC
MSB
output
Which change in output would be necessary to overcome this market failure?
A from K to M
B from M to N
C from M to L
D
from N to L](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c91eb95-f741-496e-bebb-e2c3044eb370%2F16ff9bd1-0e9a-4f23-b61f-366847a513ba%2Ff1fzgu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The diagram shows the private and social costs and benefits of production in a free market that
result in market failure.
costs,
benefits
O
MSC
KL M
N
MPB
MPC
MSB
output
Which change in output would be necessary to overcome this market failure?
A from K to M
B from M to N
C from M to L
D
from N to L
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