Which of the following is not a market failure?
a. A lack of competition in some markets.
b. Prices determined in competitive markets, which consumers, as individuals, have no control over.
c. The presence of externalities in some markets.
d. A lack of public goods desired by a majority of citizens.
e. Income inequality.
b
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Suppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units, and the third consumer would buy 3 units of the product
If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be A) 23 units. B) 20 units. C) 12 units. D) 11 units.
Monopolistic competition is an inefficient market structure because
a. price exceeds marginal cost. b. it has a deadweight loss, just as monopoly does. c. at the equilibrium, some consumers will value the good at more than the marginal cost of production. d. All of the above are correct.