A Market Failure Occurs When

question 5

Multiple Choice

A market failure occurs when

• A) shortages or surpluses of some good cannot be eliminated.
• B) a private market cannot provide a good in socially efficient quantities.
• C) consumers' surplus falls to zero.
• D) property is privately owned and people behave competitively.

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Definitions:

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.

Service Quality

Refers to the comparison between customer expectations regarding a service and their perception of the service received, focusing on how well a service meets or exceeds customer standards.

Corporate Strategy

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.

Metrics

Quantifiable measures used to assess, compare, and track performance or efficiency over time.