Which of these is an example of the FAILURE of the market to achieve economic efficiency?
A) Firms and employees successfully achieving all mutually beneficial transactions.
B) Alpha Industries is willing to pay $55,000 per year to hire a computer programmer. Dean, a qualified computer programmer, would gladly give up his job as a waiter for a computer programming job paying at least $45,000, but is unaware of Alpha's opening.
C) Laura refuses to quit smoking even though Marlene offers her $1 per hour to stop.
D) Ace Engineering is willing to pay Diane $11 per hour, but Diane is willing to work for $10 per hour, so Ace hires her for only $10 per hour.

Question

Quizplus · Accepted Answer

In this scenario, there is a failure of the market to achieve economic efficiency because Dean, a qualified computer programmer, is not aware of Alpha Industries' job opening. This means that a mutually beneficial transaction between Alpha Industries and Dean is not happening, which would have resulted in a more efficient allocation of resources.

Which of These Is an Example of the FAILURE of the Market