Market Failure Implies That

Multiple Choice

Market failure implies that

A) in the real word, the market fails to achieve equilibrium
B) with an unequal distribution of income, the market will fail to provide sufficient goods to the poor
C) when externalities are present, the market will fail to provide the socially optimal price and output
D) negative externalities are greater than positive externalities so that the market fails to create an efficient outcome
E) the inability of the market to solve the problem of unnecessary demand is caused by persuasive advertising