A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company.This instance serves as an example of
A)market power.
B)inefficient trade.
C)inadequate enforcement of property rights.
D)the invisible hand at work.

Question

Quizplus · Accepted Answer

This situation highlights inadequate enforcement of property rights since the company's inability to protect their intellectual property led to their downfall. Customers purchasing illegal copies instead of the original CD from the company highlights the lack of respect for property rights and the need for better enforcement measures.

A Company That Formerly Produced Music CDs Went Out of Business