Market power can cause market failure if it results in a misallocation of resources.

Answer the following statement true (T) or false (F)


True

Market power contributes to market failure when it leads to resource misallocation (restricted output) or greater inequity (monopoly profits or higher prices).

Economics

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The opportunity cost of any decision is the forgone value of the next best alternative that is not chosen.

Answer the following statement true (T) or false (F)

Economics

Currently (2009) farm employment is about:

A. 15.8 percent of total employment. B. 9.4 percent of total employment. C. 1.1 percent of total employment. D. 1.8 percent of total employment.

Economics

What are the effects on a market when there is entry?

What will be an ideal response?

Economics

Which of the following is an implicit cost of production?

A) interest paid on a loan to a bank B) wages paid to labor plus the cost of carrying benefits for workers C) the utility bill paid to water, electricity, and natural gas companies D) rent that could have been earned on a building owned and used by the firm

Economics