Economics 2281 · O Level · Market failure

Market failure — practice question

Which problem would be eased by a government subsidy to a firm?

  • Aabsence of a public good
  • Babuse of monopoly power
  • Coverconsumption of a demerit good
  • Dunderconsumption of a merit good

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI