Exams

Market failure arises because it is not possible for the market to correctly weight cost and benefits in a situation in which some of the cost is completely unaccounted.

Demand-side market failures happen when demand curves do not reflect consumer’s full willingness to pay for goods or services.

Supply-side market failures occur when supply curves do not reflect the full cost of producing a good or services.

This question is designed to see how well you can mediate a situation and handle conflict. You want to come across as someone who can compromise when necessary. An interviewer wants to see that you can not only reach an outcome that is desirable for both sides of a conflict of interest, but also that you can understand where the other person is coming from. Empathy and understanding go a long way in any job and this is a good opportunity to show that you can put yourself in another’s shoes.