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Which of the following is a situation that makes a market behave inefficiently? when consumers do not have enough information to make good choices What happens to a market in equilibrium when there is an increase in supply?

Which of the following is a situation that makes the market behave inefficiently_

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Which of the following is a situation that makes a market behave inefficiently? when consumers do not have enough information to make good choices What happens to a market in equilibrium when there is an increase in supply?
 

 

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They produce inefficiently (P > MC) in the short run. That is, a firm in the perfectly competitive market gets super normal profit in the short run and normal profit in the long run. This is because in the short run, the average cost of a firm is less than the average revenue (that is, AR = P > AC)
 
 

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Difficult to make a "market choice" if you are deathly ill, have a rare or poorly understood disorder, or need life-saving treatment or medication. When the "choice" is "pay whatever we choose to demand or die" the consumer really doesn't have much in the way of options or ability to vote via shopping, if you want to take health care as an example.

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Which of the following is a situation that makes the market behave inefficiently? when consumers do not have enough information to make good choices How is the future price related to the current demand?

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