All of the following are situations in which markets fail to produce socially desirable outcomes except:
A)information asymmetry.
B)monopoly power.
C)externalities.
D)network effects.

Question

Quizplus · Accepted Answer

Network effects are situations where a product or service becomes more valuable as more people use it. While these effects can create barriers to entry and disadvantage smaller competitors, they do not necessarily result in socially undesirable outcomes. On the other hand, information asymmetry, monopoly power, and externalities can lead to inefficient and unfair outcomes, so they are considered examples of market failures.

All of the Following Are Situations in Which Markets Fail