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.

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Definitions:

City Growth

The increase in size, population, and economic activity within urban areas, often driven by factors such as industrialization, migration, and infrastructure development.

Cities

Urban areas characterized by higher population density and vast human features in comparison to areas surrounding them.

Mesopotamia

An ancient region located in the eastern Mediterranean, roughly corresponding to present-day Iraq, and is considered the cradle of civilization for its early developments in agriculture, writing, and urban life.

Modern Factory

An industrial site equipped with the latest technology and machinery for manufacturing goods and products.