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Author Question: What is market failure? What will be an ideal response?[br][br][b][color=red]Question ... (Read 32 times)

hbsimmons88

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on: Jun 29, 2018
What is market failure?
 
  What will be an ideal response?

Question 2

Why does it seem to be more difficult for investors to measure the capital stock of a firm like eBay rather than a firm like Ford Motor Company? Explain.
 
  What will be an ideal response?


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triiciiaa

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Market failure occurs when resources are misallocated or allocated inefficiently.

Answer to Question 2

Ford Motor Company is likely to have more physical assets like factories, machines and equipment that are easy to measure in market terms. However, a company like eBay may have few such physical assets since a large part of the value of their business is their good will - their reputation for conducting honest transactions and minimizing fraud.


hbsimmons88

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

bassamabas

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Reply 3 on: Yesterday
Excellent

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