Market failure is a situation in which
A. negative economic profits persist in the long run.
B. negative economic profits exist in the short run.
C. the market does not provide the ideal or optimal amount of a particular good.
D. both a and b
E. a, b, and c
Answer: C
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Must a corporation inform the SEC when it borrows from a commercial bank or through the private placements market?
A) Only from the private placements market B) Only from the commercial bank C) From both D) From neither
Suppose that Polaroid instant cameras had a guarantee that would be valid only if the camera was used with Polaroid film. This would then be an example of:
A. a tie-in sale. B. monopoly pricing. C. price discrimination. D. predatory pricing.
Public goods
A) are overproduced by unrestrained markets. B) are simply private goods that the government provides. C) cannot be consumed by more than one person without the degradation of the value of the good. D) can be consumed by more than one person without degradation of the value of the good.
The ________ states that things with the greatest value in use frequently have little or no value in exchange.
A. law of reverse exchange B. diamond/water paradox C. utility conundrum D. law of diminishing marginal utility