An Example of a Market Failure Is When

question 146

Multiple Choice

An example of a market failure is when:

• A) one person's consumption of a good imposes costs on others
• B) a firm selling a product faces competition from many other sellers.
• C) a good is priced too high for poor families to afford.
• D) the distribution of surplus is unfair.

---

Definitions:

Understandable Materials

Materials or content that are presented in a manner easy for the intended audience to comprehend or grasp.

Compliance Orientation

An approach focusing on adhering to rules, regulations, and standards to avoid legal or regulatory penalties.

Values Orientation

An approach or stance focusing on principles or standards of behavior; what is important in life.

Financial Performance

A measure of a company's profitability, financial health, and the effectiveness of its management, as reflected in its financial records and reports.