If There Is Only One Provider of Electricity in a City,then

question 105

Multiple Choice

If there is only one provider of electricity in a city,then that market is likely to fail due to:

• A) public ownership of resources.
• B) external benefits.
• C) market power.
• D) asymmetric information.

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Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes according to federal, state, or local law.

Lump-Sum Tax

A tax that is a fixed amount, regardless of the tax base's changes in size or value.

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.

Tax Burden

The measure of taxes that individuals or businesses must pay as a portion of their income or profit, reflecting the financial impact of taxation.