Quad enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. the fixed asset qualifies for 100 percent bonus depreciation in the first year. the project is estimated to generate $1,730,000 in annual sales, with costs of $636,000. the project requires an initial investment in net working capital of $290,000, and the fixed asset will have a market value of $240,000 at the end of the project.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.