Question

which of the following is not a market failure?
a. the presence of externalities in some markets.
b. a lack of public goods desired by a majority of citizens.
c. a lack of competition in some markets.
d. prices determined in competitive markets, which consumers, as individuals, have no control over.

Explanation:

Market failures occur when free markets fail to allocate resources efficiently. Externalities, insufficient public goods, and lack of competition all lead to inefficient resource allocation, so they are market failures. In competitive markets, price determination by supply and demand is a feature of efficient, well-functioning markets, not a failure.

Answer:

d. Prices determined in competitive markets, which consumers, as individuals, have no control over.