Yasmin Has an Idea, but She Cannot Implement It Because

question 71

Multiple Choice

Yasmin has an idea, but she cannot implement it because a monopoly producer has placed a barrier to entry. What makes this an abnormal circumstance?

• A) Innovation
• B) Market failure
• C) Intervention
• D) Goals other than profit

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Definitions:

External Costs

Costs incurred as a result of an economic activity that are not borne by the entities undertaking the activity but rather by other parties or society at large.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Benefits To Consumers

Refers to the advantages or improvements in well-being and satisfaction that consumers experience from purchasing and using goods and services.

Externalities

Monetary consequences that reach beyond the primary parties, impacting others positively or negatively.