You are logged in 88 Fadhyah Fache The term market failure refers to Select one
ID: 1132680 • Letter: Y
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You are logged in 88 Fadhyah Fache The term market failure refers to Select one O a a situation in which the market on its own fails to allocate resources efficiently b, an unsuccessful advertising campaign which reduces demand for a product c a situation in which competition among firms becomes ruthless. d, a firm which is forced out of business because of losses The opportunity cost of an item is Select one a. the number of hours needed to earn money to buy the item. b, what you give up to get that item cusually less than the dollar value of the item d. the dollar value of the item Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800 once the repairs are complete. Mike discovers that, in addition to the $500 he has already spent, he needs to make an additional repair, whioh will cost another $400, in order to make the boat worth $800 to potential buyers. He can sell the boat as it is now for $300. What should he do? Select one O a. He shouid sell the boat as it is now for $300 b He should complete the repairs and sell the bost for $800 O c. He should keep the boat since it would not be rational to spend $900 on repairs and then sell the boat for $800. d. It does not matter which action he takes; the outcome is the same either wayExplanation / Answer
A)A situation in which market on its own fail to allocate resources efficiently .
Explanation:Market failure occur when there is inefficient distribution of goods and resources .markke failure is an economic situation.
B)what you give up to get that item
Explanation:opportunity cost is the valie of something that must be given up to acquire or achieve something.
C)He should keep the boat since it would not be rational to spend $900 on repair and then sell the boat for $800
Explanation :If he spent $400 in addition to $500 than it will total cost him $900 after spending $900 he can sell it to potential buyer for $800 it means he has to suffer loss of $100.
Where as if he will keep the boat since it would not be rational to spend $900 than he can cover the loss of $100 which be has to suffer while selling the boat $800.
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