ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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market power.
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externalities
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imperfectly competitive markets.
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All of the above are correct.
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Detailed explanation-1: -Question: Inefficiency can be caused in a market by the presence of market power, externalities Cimperfectly competitive markets. All of the above are correct.
Detailed explanation-2: -Market inefficiencies exist due to information asymmetries, transaction costs, market psychology, and human emotion, among other reasons. As a result, some assets may be over-or under-valued in the market, creating opportunities for excess profits.
Detailed explanation-3: -There are five major elements that, if lacking or weak, can cause a market failure. The five major elements include: competition, information, mobility of resources, externalities, and distribution of public goods.
Detailed explanation-4: -The two leading causes of market failure are externality and market power.
Detailed explanation-5: -The main types of market failure include asymmetric information, concentrated market power, public goods and externalities.