Which of the following exemplifies a market failure?
A) One person's consumption of a good imposes costs on others.
B) A firm selling a product faces competition from many other sellers.
C) A good is priced too high for poor families to afford.
D) The distribution of surplus in a market is unfair.
Correct Answer:
Verified
Q1: Why might a government impose a minimum
Q3: Governments can discourage the consumption of certain
Q4: What do we call situations in which
Q5: Normative analysis:
A) involves the formulation and testing
Q6: A government might intervene in a market
Q7: Price controls:
A) are regulations that set a
Q8: A price ceiling is:
A) a legal maximum
Q9: Governments might choose to intervene in a
Q10: A market failure is most likely to
Q11: Positive analysis:
A) involves the formulation and testing
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