The Type of Market Failure in Which a Breakdown in the Ideal

question 37

Multiple Choice

The type of market failure in which a breakdown in the ideal or typical relationship between a buyer and seller occurs is called:

• A) information asymmetry.
• B) contract failure.
• C) government failure.
• D) demand heterogeneity.

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Definitions:

Cloud-Based Service

A service made available to users on demand via the Internet from a cloud computing provider's servers.

Architectural Model

A scaled physical or digital representation of a structure used by architects to communicate design ideas and plan buildings.

Imaging Drum

A photosensitive drum located inside a toner cartridge; attracts laser toner particles.

Laser Printer

A type of printer that uses a laser beam to produce high quality text and graphics by repeatedly passing a laser beam back and forth over a negatively charged drum to define a differentially charged image.