A company that formerly produced software went out of business because too many potential customers bought illegally-produced copies of the software instead of buying the product directly from the company.This instance serves as an example of
A) market power.
B) inefficient trade.
C) inadequate enforcement of property rights.
D) the invisible hand at work.

Question

Quizplus · Accepted Answer

The scenario given highlights the issue of inadequate enforcement of property rights. The company's failure was ultimately due to customers opting for illegal copies of their software, which is a clear violation of the company's intellectual property rights. This suggests that there was either a lack of legal measures in place to prevent or penalize such behavior, or that these measures were not enforced effectively enough.

A Company That Formerly Produced Software Went Out of Business