Use the following to answer question(s): Correcting for Market Failure: A Public Good

-(Exhibit: Correcting for Market Failure: A Public Good) A private market produces R units of output of a public good.If the government intervenes to correct for market failure to provide the efficient level of a public good, the government will generate increased benefits of:
A) RUVW.
B) RTVW.
C) WVKX.
D) TUV.

Question

Use the following to answer question(s): Correcting for Market Failure: A Public Good
 
-(Exhibit: Correcting for Market Failure: A Public Good) A private market produces R units of output of a public good.If the government intervenes to correct for market failure to provide the efficient level of a public good, the government will generate increased benefits of:
A) RUVW. 
B) RTVW. 
C) WVKX. 
D) TUV.

Quizplus · Accepted Answer

The government will generate increased benefits of RUVW because it will provide the efficient level of the public good, which is greater than the level provided by the private market.

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