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    Question

    Which of the following is not an example of market failure?

    A Monopolies Correct Answer Incorrect Answer
    B Asymmetric Information Correct Answer Incorrect Answer
    C Economies of scale Correct Answer Incorrect Answer
    D Externalities Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Economies of scale are cost advantages companies experience when production becomes efficient, as costs can be spread over a larger amount of goods.

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