Multiple Choice
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) the market provides the ideal or optimal amount of a particular good.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: The _ problem in the market for
Q33: Generally, negative externalities result in<br>A)too much of
Q35: Suppose the production of a good results
Q41: Suppose the production of a good results
Q81: The Coase theorem<br>A)shows that under certain conditions
Q97: Asymmetric information can exist before, but not
Q114: Given a positive externality, the marginal social
Q128: Which of these goods may be considered
Q169: Identify two activities that generate positive externalities
Q179: Insurance deductibles _ the _ problem of