When _____, There Is Market Failure

question 42

Multiple Choice

When _____, there is market failure.

• A) the costs of production are minimized
• B) market price is greater than marginal cost
• C) the demand for a good is high
• D) the supply of a good is perfectly inelastic

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Definitions:

Fee Simple Owner

The highest form of property ownership, providing full rights to the land and its structures.

Condemnation Power

The legal authority granted to governmental bodies to seize private property for public use, subject to compensation for the property owner.

Adverse Possession

The acquisition of title to real property through open occupation, without the consent of the owner, for a period of time specified by a state statute. The occupation must be actual, exclusive, open, continuous, and in opposition to all others, including the owner.

Individual's Right

Legal entitlements or freedoms guaranteed to a person under a legal system.