Causes of Market Failure Include

question 60

Multiple Choice

Causes of market failure include

• A)externalities and market power.
• B)market power and incorrect forecasts of consumer demand.
• C)externalities and foreign competition.
• D)incorrect forecasts of consumer demand and foreign competition.

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Definitions:

Selling Price

The final price at which a product or service is sold to the customer, taking into account costs, profit margins, and market demand.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core activities.

List Price

The published price of a product or service, often suggested by the manufacturer or service provider, before any discounts or negotiations.

Standard Amount

A pre-determined or fixed quantity used as a benchmark, reference, or norm for measurements, production, or financial assessments.