When the Market Does Not Lead to an Optimal Allocation

question 144

Multiple Choice

When the market does not lead to an optimal allocation of resources,there must be

• A)Too much regulation.
• B)A market failure.
• C)Proper antitrust laws in place.
• D)A competitive market structure.

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Definitions:

Fixed Unit Price Contract

A contract type where the price for each unit of work is agreed upon before the work begins, regardless of the total cost.

Services

Activities performed by one party for another that do not result in ownership of physical products, often characterized by intangibility, variability, and inseparability.

Materials

The tangible substances or components used in the construction or manufacture of a product within a project.

Request For Quote

A formal document that an organization sends to suppliers or service providers asking them to provide a price estimate for specified goods or services.