Economists suggest that a market can fail if
A)consumers have to pay more than they want to.
B)producers get smaller profits than they desire.
C)the good or service is such that consumers are unable to make well-informed decisions about its consumption.
D)governments dictate prices.

Question

Quizplus · Accepted Answer

A market can fail if consumers are unable to make well-informed decisions about the good or service due to lack of information or the presence of false information. This leads to market inefficiencies and can result in negative consequences for both consumers and producers. The other options listed (A, B, and D) do not necessarily constitute market failure.

Economists Suggest That a Market Can Fail If