Which of the following is not a market failure?
A) A lack of competition in some markets.
B) Prices determined in competitive markets, which consumers, as individuals, have no control over.
C) The presence of externalities in some markets.
D) A lack of public goods desired by a majority of citizens.

Question

Quizplus · Accepted Answer

Prices determined in competitive markets, which consumers, as individuals, have no control over, are not considered a market failure because they are determined by the forces of supply and demand in a competitive market. The other options (A, C, and D) are all considered examples of market failures.

Which of the Following Is Not a Market Failure