What Does the Term Market Failure Refer To

question 193

Multiple Choice

What does the term market failure refer to?

• A)a situation in which the market on its own fails to allocate resources efficiently
• B)an unsuccessful advertising campaign that reduces buyer demand
• C)a situation in which competition among firms becomes ruthless
• D)a firm that is forced out of business because of losses

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Definitions:

Lactate

A compound produced during anaerobic metabolism, commonly known as lactic acid when found in the body.

Preparatory Reaction

A phase in cellular respiration occurring in the mitochondria where pyruvate from glycolysis is converted into acetyl-CoA, preparing it for the citric acid cycle.

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration in many living organisms and for combustion.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.