Ask Question
24 December, 08:35

If there is a lack of competition in a market, a market failure results because the quantity of goods sold is ___ than the optimal level while prices are ___ than the optimal level. lower; higher higher; lower higher; higher lower; lower

+3
Answers (2)
  1. 24 December, 10:49
    0
    Answer is lower; higher.

    Refer below.

    Explanation:

    If there is a lack of competition in a market, a market failure results because the quantity of goods sold is lower than the optimal level while prices are higher than the optimal level.
  2. 24 December, 11:55
    0
    If there is a lack of competition in a market, a market failure results because the quantity of goods sold is lower than the optimal level while prices are higher than the optimal level.

    Explanation:

    Market failure is inefficient distribution of goods and services.

    Monopoly especially the one influenced by government is one of the main causes of market failure.

    In a monopoly, a single supplier controls the entire supply of a product. This creates a rigid demand curve. That is, demand for the product remains relatively stable no matter how high its price goes. Supply can be restricted to keep prices high which leads to under provision, or scarcity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If there is a lack of competition in a market, a market failure results because the quantity of goods sold is ___ than the optimal level ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers