Which of the following phenomena is NOT an example of market failure?
A)moral hazard
B)a positive externality
C)asymmetric information
D)diminishing marginal returns
E)public goods

Question

Quizplus · Accepted Answer

Diminishing marginal returns is not an example of market failure because it is a concept that explains the relationship between inputs and outputs in the production process, and not a market-related issue. A, B, C, and E are all examples of market failure because they involve situations where the market mechanism fails to allocate resources efficiently or achieve socially optimal outcomes.

Which of the Following Phenomena Is NOT an Example of Market