A market failure will occur when
A)an efficient amount of goods and services is not provided.
B)new laws regulating taxes and subsidies are created.
C)government involvement is minimal.
D)when the mall does not open on time.

Question

Quizplus · Accepted Answer

A market failure occurs when the free market fails to allocate resources efficiently, resulting in either an overallocation or underallocation of resources, leading to an inefficient or suboptimal outcome. This may happen due to externalities, public goods, incomplete information or other market imperfections. It is not necessarily related to government involvement or new regulations, nor does it depend on the opening time of a mall.

A Market Failure Will Occur When