Situations in which the actions of private individuals and firms are insufficient to ensure efficient markets are referred to as:
A)market failures.
B)disequilibrium.
C)negative externality.
D)price gouging.

Question

Quizplus · Accepted Answer

When private individuals and firms are unable to ensure efficient markets, it is referred to as market failure. This can occur due to a variety of reasons such as information asymmetry, externalities, public goods, and natural monopolies. In such situations, government intervention may be required to ensure economic efficiency.

Situations in Which the Actions of Private Individuals and Firms