Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The diagram illustrates the private and social costs and benefits of production in a free market, leading to market failure. What adjustment in output would be needed to remove this market failure?

  • Afrom K to M
  • Bfrom M to N
  • Cfrom M to L
  • Dfrom N to L

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