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Coordination Failures Occur When

Question 145

Multiple Choice

Coordination failures occur when


A) one party withholds valuable information in a transaction that leads to overproduction.
B) party A would like to change his behavior if party B would change hers, and vice versa, and yet the two changes do not take place because the decisions of A and B are made independently.
C) consumers save more of their income than the government would like.
D) the average price of a good persists, even though the good should be priced higher than the average price.

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