3. Bueno is a firm that produces and sells guava, a type of fruit. The market for guava is perfectly competitive. The ma

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3 Bueno Is A Firm That Produces And Sells Guava A Type Of Fruit The Market For Guava Is Perfectly Competitive The Ma 1 (132.88 KiB) Viewed 43 times

3. Bueno is a firm that produces and sells guava, a type of fruit. The market for guava is perfectly competitive. The marginal private benefit (MPB), marginal private cost (MPC), marginal social benefits (MSB) and marginal social cost (MSC) curves are illustrated in the graph provided. Price per Unit ($) 8 54 0 -0 Q₁ MPC MSC MSB MPB Quantity of Output A. Identify the kind of market failure represented by this graph. B. Using numbers from the graph, identify the marginal external benefit.