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Problem 2The graph below depicts the market conditions Zhao, Inc., faces in the zizzlesmarket, where D = demand, MSB = marginal social benefit, MR = marginalrevenue, MSC = marginal social cost, and MPC = marginal private cost.Price PerUnit ()6050MSC40MPC353027.520105D = MSB0100 150 200300400500600 Quantity225 250MR(a) What two potential sources of market failure exist in the market for Zhao'szizzles? Explain each potential source of market failure using the information inthe graph.(b) Using nume
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