Market failure is a situation in which 000 о negative economic profits persist in the long run. Onegative economic profits exist in the short run. the market does not provide the ideal or optimal amount of a particular good. both a and b a, b, and c

Market failure is a situation in which 000 о negative economic profits persist in the long run. Onegative economic profits exist in the short run. the market does not provide the ideal or optimal amount of a particular good. both a and b a, b, and c

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

Market failure is a situation in which
OO
negative economic profits persist in the long run.
negative economic profits exist in the short run.
the market does not provide the ideal or optimal amount of a particular good.
both a and b
a, b, and c

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