Economics (AS & A Level) · Feb / March 2025 · Paper 32 · Question 6
9708Private costs and benefits, externalities and social costs and benefits
The diagram shows the private and social costs and benefits of production in a free market that result in market failure. Which change in output would be necessary to overcome this market failure?
- Afrom K to M
- Bfrom M to N
- Cfrom M to L
- Dfrom N to L
As printed in the paper
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Correct answer: C. from M to L
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