The price of diamonds is high, in part because the majority of the world's diamonds are controlled by a single firm. This is an example of

a. a market failure caused by an externality.
b. a market failure caused by market power.
c. a market failure caused by equality.
d. There is no market failure in this case.

b

Economics

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If M = 3,000, P = 2, and Y 12,000, what is velocity?

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Which of the following is a regressive tax?

A. a state tax of 5 percent of income B. a local sales tax of 5 percent C. the federal individual income tax D. a federal flat tax of 30 percent

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