Which of the Following Best Describes a Situation in Which

question 32

Multiple Choice

Which of the following best describes a situation in which more people are buying a product,more retailers are wanting to stock the product,and sales of the product are increasing?

• A)virtuous circles
• B)learning curve effects
• C)economies of scope
• D)synergy

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Definitions:

Market Failure

A less than efficient allocation of resources.

Public Goods

Public goods refer to commodities or services that are made available to all members of a society, typically funded by the government, and characterized by non-excludability and non-rivalry in consumption.

Externalities

Consequences of an economic activity experienced by unrelated third parties; can be positive or negative.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.