Market failure is the inability of
A)buyers to interact harmoniously with sellers in the market.
B)a market to establish an equilibrium price.
C)buyers to place a value on the good or service.
D)some unregulated markets to allocate resources efficiently.

Question

Quizplus · Accepted Answer

Market failure refers to the situation when the market fails to allocate resources efficiently, leading to an inefficient allocation of goods and services. This can happen due to several reasons such as externalities, asymmetric information, public goods, and market power. In these cases, the market fails to achieve an optimal allocation of resources and the government intervention may become necessary to correct the market failures.

Market Failure Is the Inability of