A market failure occurs when
A) price equals marginal cost.
B) there is a non-optimal allocation that leads to an inefficient market.
C) deadweight loss is maximized.
D) a firm shuts down.
B
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Cross-price elasticity of demand measures
a. elasticity of demand at the intersection of the supply and demand curves b. elasticity of supply at the intersection of supply and demand curves c. the relative elasticity of supply and demand at the intersection of the two curves d. the relationship between the demand for one good and the price of another e. the relationship between the demand for one good and the supply of another
Monopolistic competition differs from perfect competition only with regard to the number of firms participating in the market
a. True b. False Indicate whether the statement is true or false