Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

Give one example of market failure.

  • Aa firm incurring a loss by selling goods at prices below the average cost
  • Ba guaranteed price that results in the accumulation of unsold stocks
  • Clow income earners being unable to buy high-priced goods
  • Dunder-provision of a socially desirable good

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