A situation in which the unregulated competitive market outcome is inefficient because prices fail to provide proper signals to buyers and sellers is known as:
A) an imperfectly competitive market.
B) a market failure.
C) a deadweight loss.
D) a disequilibrium.

Question

Quizplus · Accepted Answer

A market failure occurs when the allocation of goods and services by a free market is not efficient, leading to a loss of economic and social welfare. This can happen when prices do not reflect the true costs or benefits of production or consumption, resulting in an inefficient allocation of resources.

A Situation in Which the Unregulated Competitive Market Outcome Is