Which of the following is an incidence of market failure?
A) The firm producing the good is earning zero economic profit.
B) Consumers change their buying habits in response to a tax.
C) Firms change their production plans in response to a tax.
D) The price of a good exceeds the opportunity cost of producing it.
Correct Answer:
Verified
Q3: Which of the following is an example
Q4: Market failures arise when
A) people look out
Q5: Market failures arise when
A) society is not
Q6: When the city of London imposed a
Q7: Positive externalities create problems within a price
Q9: A firm that produces chemical solvents creates
Q10: When does a subsidy to a business
Q11: Suppose that an instance of market failure
Q12: If a corporation were forced to absorb
Q13: Which of the following is a method
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