Which of the following could be evidence of a market failure?
A) There are only a handful of firms competing against each other in an industry.
B) The market price of a product is above the average cost of production.
C) Resources in an economy are not fully utilized.
D) Market prices do not reflect true production costs.
D
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Which of the following did not occur during the Industrial Revolution?
a. Production became more reliant on highly specialized equipment. b. A more efficient division of labor was promoted. c. Workers bore much of the costs of production. d. The transaction costs of contracting with individual resource owners were reduced. e. Technological development increased the productivity of most workers.
Which of the following is an example of an application of the ceteris paribus assumption?
A) an analysis of how price changes affect how much of a good people will purchase when all other factors are held constant B) an analysis of how people purchase more goods when prices decline and income increases C) After reading an article on the dangers of high-fat diets, an individual buys less red meat when prices increase. D) an analysis of how worker productivity increases when a firm invests in new machines and training programs