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:

Decision Making

The process of choosing among alternative options or actions to solve a problem or achieve a goal.

Branding

The process of creating a unique name, symbol, or design that identifies and differentiates a product or company from its competitors.

Sequential Process

A progressive series of steps or stages in which each is dependent on the preceding one and often leads to a final result or outcome.

Brand Awareness

How well consumers know and perceive the attributes or branding of a distinct type of goods or services.