Which of the Following Is Not a Market Failure

question 5

Multiple Choice

Which of the following is not a market failure?

• A) A lack of competition in some markets.
• B) Prices determined in competitive markets, which consumers, as individuals, have no control over.
• C) The presence of externalities in some markets.
• D) A lack of public goods desired by a majority of citizens.
• E) Income inequality.

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Definitions:

Capacity Level

The maximum output or production ability of a facility, operation, or system given its constraints and resources.

Planning Horizon

The time frame over which future events are considered or planned for in the process of strategic decision-making.

Aggregate Planning

A process of optimizing production plans and facility operations over a medium-term horizon, to balance demand and capacity.

Capacity Utilization

A measure of how effectively an entity uses its productive capacity. It's the percentage of total potential output that is actually being achieved.