Which of the Following Is a Source of Market Failure

question 10

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:

IPO

An Initial Public Offering (IPO) is the process through which a private company goes public by selling its shares to the public for the first time.

Allocation of Shares

The process of distributing shares of stock among investors.

Oversubscribed

A situation in which the demand for an IPO or a new issue of securities exceeds the number of shares available.

Rights Offering

A method by which a company raises capital through issuing new shares to existing shareholders at a predetermined price for a fixed period.