Market Failure Is the Inability of

question 390

Multiple Choice

Market failure is the inability of

• A)buyers to interact harmoniously with sellers in the market.
• B)a market to establish an equilibrium price.
• C)buyers to place a value on the good or service.
• D)some unregulated markets to allocate resources efficiently.

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Definitions:

Neutral Third Party

An impartial entity involved in a dispute or negotiation to facilitate a resolution or agreement without any bias towards the parties involved.

Bargaining Zone

The range within which an agreement is satisfactory to both parties involved in a negotiation process.

Two-party Negotiation

A process where two parties discuss potential compromises to resolve a dispute or reach an agreement.

Non-rational Escalation

The phenomenon where individuals or groups continue to invest in a decision or project despite clear evidence it is not yielding beneficial outcomes, due to emotional investment or bias.