Deadweight Loss and Market Failure Are Created When a Market

question 65

Multiple Choice

Deadweight loss and market failure are created when a market produces

• A) less than the efficient quantity, but not when more than the efficient quantity is produced.
• B) either more or less than the efficient quantity.
• C) more than the efficient quantity, but not when less than the efficient quantity is produced.
• D) the efficient quantity.
• E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.

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Definitions:

Environmental Scanning

The act of monitoring developments outside the firm’s control with the goal of detecting and responding to threats and opportunities.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Environmental Scanning

The process of systematically gathering, analyzing, and managing external information about the factors that could impact an organization's future plans.

Marketing Position

The unique space a brand or product occupies in the minds of the target market, often relative to competitors.