Market Power Can Cause Market Failure If It Results in a Misallocation

question 12

True/False

Market power can cause market failure if it results in a misallocation of resources.

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Definitions:

Carboxyl Group

A functional group, written as -COOH, present in organic acids comprising a carbon atom double-bonded to an oxygen atom and singly bonded to a hydroxyl group.

Hydroxyl Group

A functional group (-OH) consisting of an oxygen atom bonded to a hydrogen atom, found in alcohols and phenols.

Sodium Propanoate

A sodium salt of propanoic acid, used as a food preservative with the formula CH3CH2COONa.

Hydrobromic Acid

A strong acid consisting of hydrogen bromide in water, used in the synthesis of bromine compounds.