Which of the following would be an example of market failure?
A)Harmful second hand cigarette smoke
B)lack of funding for private education
C)underproduction of a good by a monopoly
D)all of the above

Question

Which of the following would be an example of market failure?​
A)​Harmful second hand cigarette smoke
B)​lack of funding for private education
C)​underproduction of a good by a monopoly
D)​all of the above

Quizplus · Accepted Answer

Market failure occurs when the market fails to allocate resources efficiently. In choice A, second-hand smoke is a negative externality that results in market failure. In choice B, lack of funding for private education may result in unequal access to education and may lead to market failure. In choice C, a monopoly may restrict output to maximize profit, resulting in underproduction and inefficiency in the market. Therefore, all of the above choices are examples of market failure.

Which of the Following Would Be an Example of Market