Which of the Following Is a Source of Market Failure

question 25

Multiple Choice

Which of the following is a source of market failure?

• A) Unexpected shifts in demand and supply
• B) Monopoly power
• C) Diseconomies of scale
• D) Destructive price wars between firms
• E) Perfect information in markets

---

Definitions:

Optimistic People

Individuals who generally expect positive outcomes and look at the brighter side of life.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time to detect patterns, causes, and effects.