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1.6 Market failure

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Question 44

A firm develops a new technology. Rival firms and suppliers learn from it without contributing to the research costs.

Which statement about the firm's research is correct?

[1]
A

The social benefit is equal to the firm's private benefit

B

The firm's private benefit is greater than the social benefit

C

The social benefit is greater than the firm's private benefit

D

The social cost is greater than the firm's private cost

Markscheme

1.6 Market failure Questions

  1. GCSE
  2. /Economics
  3. /1.6 Market failure

83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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