The Term Market Failure Refers to

question 428

Multiple Choice

The term market failure refers to

• A) a market that fails to allocate resources efficiently.
• B) an unsuccessful advertising campaign which reduces demand.
• C) ruthless competition among firms.
• D) a firm that is forced out of business because of losses.s

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Definitions:

Bagels

A dense, chewy, doughnut-shaped bread product, often enjoyed as a breakfast item and can be topped with various ingredients.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Assembling

The process of putting together parts or components to build a product or structure.

Swing Sets

Outdoor play equipment consisting of a frame from which swings are suspended, commonly found in playgrounds and backyards.