Market Failure Occurs When No Individual Has the Ability to Substantially

question 215

True/False

Market failure occurs when no individual has the ability to substantially influence market prices.

---

Definitions:

Costs

The expenses associated with the production of goods or services, including but not limited to materials, labor, and overhead.

Competitive Industry

An industry where numerous firms compete against each other to sell similar products to consumers.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the quantity of output produced.

Marginal Revenue

The augmented income obtained by selling one more unit of a good or service.