ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a particular industry fails to make an adequate profit in a given year.
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a single company does not supply more than 90 percent of the total output for a good or service.
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goods and services are not allocated in the most efficient way.
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the economy experiences a prolonged downturn and unemployment is extremely high
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Detailed explanation-1: -A market failure is when there is an inefficient distribution of goods and services that leads to a lack of equilibrium in a free market. The law of supply and demand is meant to lead to an equilibrium in prices, and when it does not it indicates a factor in the market has failed.
Detailed explanation-2: -Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market. Furthermore, the individual incentives for rational behavior do not lead to rational outcomes for the group.
Detailed explanation-3: -The failure of private decisions in the marketplace to achieve an efficient allocation of scarce resources is called market failure. Markets will not generate an efficient allocation of resources if they are not competitive or if property rights are not well defined and fully transferable.
Detailed explanation-4: -Market failure occurs when there is a state of disequilibrium in the market due to market distortion. It takes place when the quantity of goods or services supplied is not equal to the quantity of goods or services demanded.
Detailed explanation-5: -Market failure, in economics, is a situation defined by an inefficient distribution of goods and services in the free market.