Ask Question
17 May, 16:27

Which of the following statements is not correct? a. Market power can cause markets to be inefficient. b. The invisible hand can remedy all types of market failures. c. Externalities can cause markets to be inefficient. d. An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.

+5
Answers (1)
  1. 17 May, 16:49
    0
    Option B is correct.

    The invisible hand can remedy all types of market failures.

    Explanation:

    A market failure is something that is inherent to the market that causes the market equilibrium allocation to be inefficient. Market failures are numerous in the resource and environmental sector of the economy. The market fails in the allocation of many environmental and natural resources, making the overall allocation of resources inefficient.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following statements is not correct? a. Market power can cause markets to be inefficient. b. The invisible hand can remedy all ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers