What Is the Meaning Behind the Statement, "Too Big to Fail

question 125

Multiple Choice

What is the meaning behind the statement, "Too big to fail"?

• A) Large organizations that dominate the industry can make management mistakes but still survive.
• B) Small to medium organizations are not as innovative as large companies and hence not as successful.
• C) Large companies are more customer responsive than small companies.
• D) History has shown that large companies rarely fail.

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Definitions:

Rival in Consumption

A property of a good whereby one person's use of the good reduces the ability of another person to use the same good.

Individual Marginal Benefit

The additional satisfaction or utility that an individual derives from consuming one more unit of a good or service.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and other forms of involvement.

Traffic Lights

Signaling devices positioned at road intersections, pedestrian crossings, and other locations to control flows of traffic.