If the government overcorrected in a situation of external costs
A)More than the efficient amount of the good would end up being produced.
B)Less than the efficient amount of the good would end up being produced.
C)It would result in a welfare cost in that market that was bigger than the initial welfare cost.
D)Both a and c are would result.

Question

If the government overcorrected in a situation of external costs
A)​More than the efficient amount of the good would end up being produced.
B)​Less than the efficient amount of the good would end up being produced.
C)​It would result in a welfare cost in that market that was bigger than the initial welfare cost.
D)Both a and c are would result.

Quizplus · Accepted Answer

The Answer of If the government overcorrected in a situation of external costs
A)​More than the efficient amount of the good would end up being produced.
B)​Less than the efficient amount of the good would end up being produced.
C)​It would result in a welfare cost in that market that was bigger than the initial welfare cost.
D)Both a and c are would result.

If the Government Overcorrected in a Situation of External Costs