When firms have the ability to restrict output,raise prices,stifle competition,and inhibit innovation,the market failure involved is

Question

Quizplus · Accepted Answer

When firms have the ability to restrict output, raise prices, stifle competition, and inhibit innovation, it means they have market power. This market power allows them to act against the interests of consumers and results in a market failure. Therefore, the correct choice is C.

When Firms Have the Ability to Restrict Output,raise Prices,stifle Competition,and