What is shown here?

positive production externality

negative production externality

positive consumption externality

negative consumption externality

none of the above

In this case the competitive market outcome is inefficient because the market produces _____.

too much quantity

not enough quantity

none of the above

The dead weight loss associated with the market equilibrium is area ____ (select all that apply)

A

B

C

D

E

F

Briefly describe a policy that would eliminate the dead weight loss in this market.

SMC S P A F 'D 1 D = SMB C