Economics 0455 · IGCSE · Market failure

Market failure — practice question

There has been growing concern about how large firms exploit the environment. What is the principal cause of this concern?

  • ALarge firms are unprofitable because of diseconomies of scale.
  • BLarge firms combine together to fix prices.
  • CThe exploitation of resources is expensive.
  • DUnlimited wants will use up the finite resources.

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