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The Market Failure of Imperfect Competition Is Most Likely to Result

Question 54

Multiple Choice

The market failure of imperfect competition is most likely to result if Peanuts 'R' Us:


A) keeps secret a discovery that excessive consumption of peanut butter causes nearsightedness.
B) discards broken peanut shells on to an adjacent recreational area in the production of peanut butter.
C) is subject to performance standard regulations by the PBRC (Peanut Butter Regulatory Commission) .
D) acquires ownership of all peanut butter processing plants in the country.

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