Market Failure Is a Situation in Which

question 38

Multiple Choice

Market failure is a situation in which

• A)negative economic profits persist in the long run.
• B)negative economic profits exist in the short run.
• C)the market does not provide the ideal or optimal amount of a particular good.
• D)the market provides the ideal or optimal amount of a particular good.

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Definitions:

Mentally Incompetent

A legal status indicating that an individual is not capable of making decisions for themselves due to mental incapacity or illness.

Breach of Contract

The failure to perform as specified in a contract without a legitimate legal excuse.

RLLP

A Registered Limited Liability Partnership, a form of partnership that offers some partners limited liability regarding the partnership's debts and obligations.

Collateralize

The act of using an asset as security for a loan, ensuring the lender can seize the asset if the borrower defaults.