A company that formerly produced software went out of business because too many potential customers bought illegally-produced copies of the software instead of buying the product directly from the company.This instance serves as an example of
A)market power.
B)market failure.
C)inadequate enforcement of property rights.
D)the invisible hand at work.

Question

Quizplus · Accepted Answer

The situation described is an example of inadequate enforcement of property rights. The company's software was being illegally copied and distributed, which means that the company was not able to protect its intellectual property and was losing out on potential profits. This highlights the importance of property rights and the need for effective enforcement mechanisms to prevent situations like this from occurring.

A Company That Formerly Produced Software Went Out of Business