1.3.1 Do you agree or disagree with each of the following statements?

Explain your answer.

a. Nutritional food is a public good and should be produced by the public sector because private markets will fail to produce it efficiently.

b. Imperfect markets are inefficient because as price-makers, firms in these markets can guarantee that price will always be less than marginal cost.

c. Financial planning service is an example of a potentially inefficient market because consumers do not have perfect information about the service.