Which of the Following (Is)are Considered Market Failure(s)

question 229

Multiple Choice

Which of the following (is) are considered market failure(s) ?

• A)Monopoly.
• B)Externalities.
• C)The lack of public goods and services.
• D)All of the choices are considered market failures.

---

Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by discounting future cash flows.

Cash Flow

Cash flow represents the net amount of cash and cash equivalents being transferred into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial health.

WACC

Stands for Weighted Average Cost of Capital, which calculates a firm's cost of capital, considering the proportion of each capital component, including debt and equity.

NPV

Net Present Value (NPV) is the calculation used to find today’s value of a future stream of payments, subtracting the initial investment.