Which of the Following Can Lead to Market Failure

question 70

Multiple Choice

Which of the following can lead to market failure?

• A)externalities and market power
• B)externalities but not market power
• C)market power but not externalities
• D)neither externalities nor market power

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Definitions:

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Efficiency

The extent to which resources are used in the best possible way to produce goods and services.

Labor Turnover

The rate at which employees leave a company and are replaced by new employees, often used as a measure of a company's stability and employee satisfaction.

Voice Mechanisms

Methods or processes through which opinions, feedback, or preferences are expressed and communicated in a decision-making context.