Two CEOs from different firms in the same market collude to fix the price in the market. This action violates the

In a competitive constant-cost industry, an increase in consumer demand leads to

a. a decrease in output b. high interest rates c. an increase in output d. inflation e. a decrease in resource employment

Market failure implies that

a. in the real word, the market fails to achieve equilibrium b. with an unequal distribution of income, the market will fail to provide sufficient goods to the poor c. when externalities are present, the market will fail to provide the socially optimal price and output d. negative externalities are greater than positive externalities so that the market fails to create an efficient outcome e. the inability of the market to solve the problem of unnecessary demand is caused by persuasive advertising