Market failure can be caused by
a. too much competition.
b. externalities.
c. low consumer demand.
d. scarcity.
b
You might also like to view...
Which of the following represents the equation that would be used to determine the yield to maturity of a corporate bond with a face value of $1000, price of $1100, coupon rate of 5%, and maturity in three years?
A) $1100 = $1500/(1 + i)3 B) $1100 = $500/(1 + i) + $500/(1 + i)2 + 1000/(1 + i)3 C) $1100 = $500/(1 + i) + $500/(1 + i)2 + 500/(1 + i)3 D) $1100 = $500/(1 + i) + $500/(1 + i)2 + 1500/(1 + i)3
When the government tries to control pollution through cap and trade, it _____
a. issues permits that enables the owners of the permit to pollute b. allows polluting firms to produce public goods that reduce pollution c. levies tax on the polluting firm d. gives subsidies to the firms who adopt clean production technologies e. takes legal actions against the firms who pollute beyond the specified level
A natural monopoly is defined as an industry in which one firm
A. can produce the entire industry output at a lower average cost than a larger number of firms could. B. can produce the entire industry output at a lower marginal cost than a larger number of firms could. C. is very large relative to other firms that could enter the industry. D. can earn higher profits if it is the only firm in the industry rather than if other firms also enter the industry.
The interest rate that commercial banks charge each other for borrowing and lending reserves is called
A. the discount rate. B. the federal funds rate. C. the price interest rate. D. the commercial rate.