Obstacles in Achieving Efficiency in a Market Include

question 201

Multiple Choice

Obstacles in achieving efficiency in a market include

• A) public goods.
• B) the presence of an external cost or benefit.
• C) competition.
• D) Both answers A and C are correct.
• E) Both answers A and B are correct.

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Definitions:

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.