Plenary quiz Market failure

Market failure occurs when market fails to meet the needs of the society.

• True

• false

• None of the above

Private cost:

• Firm’s own costs of the costs incurred by an individual or company

• Total costs to the whole society .Private cost + external costs

External costs :

• Costs imposed on those not involved in consumption or production activities of others directly

• •Firm’s own costs of the costs incurred by an individual or company

Social cost:

• Total costs to the whole society .Private cost + external costs

• Firm’s own costs of the costs incurred by an individual or company

Social benefit:

• Total benefit to the whole society. Private benefit+ external benefit

• Revenue or benefits from producing goods and services or benefits from consuming goods and services