MCQOPTIONS
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| 1. |
Q: Which of the following is an example of market failure? |
| A. | Prices do not reflect the full social cost of production |
| B. | A firm goes out of business because it cannot find a market for its products |
| C. | Prices rise so that the consumers cannot afford the products they want to buy |
| D. | Producer surplus is maximized |
| Answer» B. A firm goes out of business because it cannot find a market for its products | |