Which of the following is not an example of market failure?
a. Extreme income inequality
b. Externalities
c. Efficient equilibrium
d. Lack of competition
c
You might also like to view...
One reason that supports nations having separate currency suggests that there are welfare gains from
A) currency competition. B) seignorage. C) capital mobility. D) debt reduction.
Bill operates a boat rental business in a competitive industry. He owns 10 boats and pays $1,000 per month on the loan that he took out to buy them. He rents each boat for $200 per month. The variable cost for each boat rental is $50 . In the off season, Bill should
a. operate his business as long as he rents at least 7 boats per month. b. operate his business as long as he rents at least 1 boat per month. c. operate his business as long as he rents all 10 boats each month. d. raise the price he charges per boat rental.