Sometimes the response to price signals, rather than the signals themselves, may be flawed.
Answer the following statement true (T) or false (F)
True
The market may fail even when the price signals are accurate. The response to price signals, rather than the signals themselves, may be flawed. For example, there may be externalities present.
Economics
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An "equal opportunity" admissions process to college would widen educational disparities between whites and blacks
Indicate whether the statement is true or false
Economics
If the average total cost curve is always above the demand curve for a monopolist:
a. the profits of the monopolist will be large. b. the monopolist must be producing inefficiently. c. the monopolist will suffer economic losses. d. entry will occur, forcing the monopolist to reduce price and expand output.
Economics