Question: QUESTION 17 Note: No referencing is required for short answer questions. Examine the following graph of a market for coal, which shows the marginal private

QUESTION 17 Note: No referencing is required for short answer questions. Examine the following graph of a market for coal, which shows the marginal private cost (MPC), marginal social cost (MSC], marginal private benefit (MPB) and marginal social benefit (MSB) Assuming this market were free from government intervention, explain whether this market is allocating society's resources efficiently. In your answer, define allocation efficiency, and make reference to the concepts of externalities and the total economic welfare of society. un Price ($) H NW O 1 Output (tonnes) MPB -MSB MPC MSC For the toolbar, press ALT-F10 (PC) or ALT-FN+F10 (Mac) B I Y S Paragraph Open Sans In 10pt

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