Which of the Following Are the Four Major Factors That

question 82

Multiple Choice

Which of the following are the four major factors that may undermine the ability of the invisible hand to produce market efficiency?

• A) externalities, private goods, poorly informed buyers or sellers, lack of competition
• B) public goods, externalities, lack of competition, poorly informed buyers or sellers
• C) competition, poorly informed buyers or sellers, externalities, public goods
• D) public goods, lack of competition, well-informed buyers and sellers, externalities

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Negotiated Price

A final price which is agreed upon by both the buyer and seller after a process of negotiation.

Cooperative Game

Game in which participants can negotiate binding contracts that allow them to plan joint strategies.

Binding Contracts

Legally enforceable agreements between two or more parties with specific obligations.