Which of the Following Is an Example of Market Failure

question 245

Multiple Choice

Which of the following is an example of market failure?

• A) Public goods.
• B) Externalities.
• C) Lack of competition.
• D) all of these.

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Definitions:

Earnings Per Share

A profitability measure that indicates the portion of a company's profit allocated to each outstanding share of common stock, calculated as net income minus dividends on preferred stock divided by the average outstanding shares.

Earnings Before Taxes

A company's profit before taxation is deducted.

Industry Average

A statistical measure representing the typical performance within a particular industry, serving as a benchmark for evaluating individual companies.

Du Pont Identity

A formula that decomposes a company's return on equity into three components: profit margin, asset turnover, and financial leverage.