indicate whether each statement is true or false.a. market failure can occur only in the presence of external costs. b. the government sometimes intervenes when market failure occurs. c. market failure occurs when a free market provides a suboptimal quantity of goods and services. d. market failure occurs when external costs or benefits are present. e. market failure occurs when external benefits but not when external costs are present. f. market failure occurs when external costs but not when external benefits are present.

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22-11-2022
Business

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indicate whether each statement is true or false.a. market failure can occur only in the presence of external costs. b. the government sometimes intervenes when market failure occurs. c. market failure occurs when a free market provides a suboptimal quantity of goods and services. d. market failure occurs when external costs or benefits are present. e. market failure occurs when external benefits but not when external costs are present. f. market failure occurs when external costs but not when external benefits are present.

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-11-29T12:32:21+01:00

Indicate whether each statement is true or false.

a. market failure can occur only in the presence of external costs. False

b. the government sometimes intervenes when a market failure occurs. True

c. market failure occurs when a free market provides a suboptimal quantity of goods and services. - True

d. market failure occurs when external costs or benefits are present. -True

e. market failure occurs when external benefits but not when external costs are present. - false

f. market failure occurs when external costs but not when external benefits are present.- False

What are the effects of market failure?

When markets fail, incentive programs for rational behavior do not produce outcomes that are reasonable for the whole. Market failure can happen when buyers, sellers, or both have incomplete information. As a result, the opportunity cost may not precisely reflect demand or supply prices.

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