Markets may fail to allocate resources efficiently when property rights are not well established.

Name: Markets may fail to allocate resources efficiently when property rights are not well established.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When property rights are not well established, it can lead to market failures because individuals or companies may not have the incentive to invest in or properly manage resources, leading to overuse, underuse, or misuse of those resources.

Markets May Fail to Allocate Resources Efficiently When Property Rights