Consider the graph below. Select the example which is a government failure, and not simply a market failure. One or more firms in an industry attempts to misuse market power. A socially desirable good or service is not supplied by private firms because it is not considered profitable. New government policies are created to protect worker health in the workplace. The government implements antitrust policies that are not successful in achieving their objectives. Compared to the competitive market equilibrium, what effect does a monopsonist have on the quantity of labor supplied? Is there a surplus or a shortage? a.) A shortage of labor is created (Q subscript E Q subscript M). b.) A shortage of labor is created (W subscript E W subscript M). c.) A surplus of labor is created (W subscript E W subscript M). d.) A surplus of labor is created (Q subscript E Q subscript M)