Market Failure Occurs When Supply and Demand Curves Only Reflect

question 31

Multiple Choice

Market failure occurs when supply and demand curves only reflect:

• A) private or market costs and benefits.
• B) external costs and benefits.
• C) external benefits.
• D) external costs.

---

Definitions:

Quarterly Basis

A periodic measure or evaluation of data in intervals of three months, often used in financial reporting and performance tracking.

Reverse Stock Split

A corporate action in which a company reduces the number of its current outstanding shares to increase the per-share price, without altering the company's market capitalization.

Liquidity

The measure of how easily assets can be converted into cash without affecting their value.

Residual Dividend Policy

A strategy where a company pays dividends from the residual or leftover equity only after all project capital needs are met.