Market failure occurs when
a. an optimal allocation of society's resources is not achieved
b. negative externalities are taken into consideration
c. positive externalities are taken into consideration
d. government failure is at its worst
e. all social costs are included in the prices of goods and services
A
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As the result of a decrease in capital, the demand for labor would ________, the supply of labor would ________, and the real wage would ________
A) decrease; decrease; decrease B) decrease; remain the same; increase C) decrease; remain the same; decrease D) decrease; increase; remain the same
In the short run, ________ increases the quantity of labor demanded by the firm
A) a decrease in the price of the firm's output B) an increase in the prices of other factors of production used by the firm C) a technological advance that decreases the marginal product of labor D) a decrease in the wage rate