Coordination failures occur when people lack some way to jointly coordinate their actions to reach a(n)
A) unanticipated price level change.
B) fully anticipated price level change.
C) mutually beneﬁcial equilibrium.
D) insider-outsider relationship.

Question

Quizplus · Accepted Answer

Coordination failures occur when individuals fail to coordinate their actions to achieve a mutually beneficial equilibrium. This can happen when there are multiple equilibria or when there is uncertainty about which equilibrium will arise. In such situations, individuals may not know what others are planning to do or may not have a way to communicate and coordinate their actions to achieve the best outcome for all.

Coordination Failures Occur When People Lack Some Way to Jointly