Market failures arise when
A) society is not using its available resources in an optimal manner.
B) some consumers have different preferences than others.
C) the economy is operating at a point outside the production possibilities curve.
D) the private costs of an economic activity are the same as the social costs.
Correct Answer:
Verified
Q1: The price system will allocate resources efficiently
Q2: When costs of producing a good spill
Q3: Which of the following is an example
Q4: Market failures arise when
A) people look out
Q6: When the city of London imposed a
Q7: Positive externalities create problems within a price
Q8: Which of the following is an incidence
Q9: A firm that produces chemical solvents creates
Q10: When does a subsidy to a business
Q11: Suppose that an instance of market failure
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