Obstacles in Achieving Efficiency in a Market Include

question 201

Multiple Choice

Obstacles in achieving efficiency in a market include

• A) public goods.
• B) the presence of an external cost or benefit.
• C) competition.
• D) Both answers A and C are correct.
• E) Both answers A and B are correct.

---

Definitions:

Minimum Retail Price

The lowest price at which a retailer is allowed to sell a product, often set by manufacturers or by law, to maintain fair competition or preserve product value.

Arbitraging

The practice of buying and selling assets to profit from a price difference in two or more markets.

Price Discriminate

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on factors like location, age, or purchasing history, and not differences in costs.

Vertical Relationships

Vertical relationships involve the connections between companies or entities at different stages of the production process, such as suppliers, manufacturers, and retailers.