How Do the Concepts of Market Failure and Failure of Market

question 30

Multiple Choice

How do the concepts of market failure and failure of market outcome relate to the concept of Pareto optimality?

• A) Market failure is judged by the criteria of Pareto optimality; failure of market outcome rejects Pareto optimality as the sole criterion.
• B) Failure of market outcome is judged by the criteria of Pareto optimality; market failure rejects Pareto optimality as the sole criterion.
• C) Both market failure and failure of market outcome are judged by the criteria of Pareto optimality.
• D) Both market failure and failure of market outcome reject the criteria of Pareto optimality for another criterion.

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Definitions:

Teaming

The process of bringing people together to collaborate and work towards a common goal.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Frames

Conceptual structures used in communication to help individuals organize their perceptions and understandings of a situation.

Legal Power

The authority vested by law in an entity or individual to make decisions, enforce rules, or control resources.