Markets Fail When Externalities Are Present _____

question 142

Multiple Choice

Markets fail when externalities are present _____

• A)because all the costs and benefits of producing goods are reflected in the market prices of the goods.
• B)because some of the costs and benefits of producing goods are not reflected in the market prices of the goods.
• C)because monopoly power arises.
• D)because profits are not maximized.
• E)because there is underprovision of merit goods.

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Definitions:

Male Nurses

Men who are professional healthcare providers specializing in the practice of nursing.

Operating Room

A specialized facility within a hospital where surgical operations are carried out under sterile conditions.

Participatory Systems

Systems or processes designed to involve all stakeholders, including users or citizens, in the decision-making or development process.

Craft

The skilled practice of a particular art, trade, or occupation, typically involving manual proficiency.