"Missing markets" result from
A)high transactions costs of such markets.
B)strict price controls.
C)the inability of producers to gain economies of scale.
D)foreign countries dominating a domestic market for a product.

Question

Quizplus · Accepted Answer

Missing markets result from the high transactions costs of such markets. Transactions costs can include search costs, bargaining costs, and enforcement costs, which can make it difficult or too costly for buyers and sellers to find each other, negotiate prices, and enforce contracts. As a result, certain markets may not exist or may be incomplete, leading to inefficiencies in resource allocation and distribution.

"Missing Markets" Result from