A free market fails when
A) firms that produce goods which create positive externalities go bankrupt.
B) firms that produce goods which create negative externalities earn high profits.
C) there is an external effect in either production, consumption, or both.
D) there is government intervention.
C
Economics
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Which one of these economists studied the relationship between income and food consumption?
a. Schumpeter b. Friedman c. Jevons d. Malthus e. Engel
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