Which of the Following Could Be Evidence of a Market

question 179

Multiple Choice

Which of the following could be evidence of a market failure?

• A) Resources in an economy are not fully utilised.
• B) The market price of a product is above the average cost of production.
• C) There is only a handful of firms competing against each other in an industry.
• D) Market prices do not reflect true production costs.

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Definitions:

Product Strategies

Plans and decisions related to the development, branding, marketing, and selling of products to meet organizational objectives and satisfy market needs.

Market Entry

The strategy or methodology used by a company to begin selling its products or services in a new market or geographical area.

Entry Strategy

A planned method of delivering goods or services to a new target market and distributing them there.

Risky Business

Activities or ventures that involve a high degree of uncertainty and potential for financial loss, but also an opportunity for significant rewards.