Which of the Following Is a Source of Market Failure

question 76

Multiple Choice

Which of the following is a source of market failure?

• A)Private goods.
• B)Market power.
• C)Government intervention.
• D)None of the choices are correct.

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Definitions:

Perfectly Elastic

A situation where the demand or supply for a product is infinitely responsive to changes in price, shown as a horizontal line on a graph.

Loanable Funds

A concept in economics that describes the market where savers supply funds for loans to borrowers.

Free-Land Era

A historical period characterized by the availability and acquisition of land at little to no cost, usually to promote settlement and development.

Zero Price

A situation where a product or service is offered to consumers at no cost, often as a part of a promotional strategy or business model.