One of the market failures caused by market power is
A)reduced demand.
B)high costs.
C)high price.
D)underproduction.

Name: One of the market failures caused by market power is A)reduced demand. B)high costs. C)high price. D)underproduction.
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Question

Quizplus · Accepted Answer

Market power can lead to underproduction because firms with significant market power may produce less than the socially optimal quantity to maximize profits, leading to inefficiencies in the market.

One of the Market Failures Caused by Market Power Is