Markets fail to allocate resources efficiently when
A)demanders and suppliers cannot agree on a price.
B)goods are rival in consumption and excludable.
C)property rights are not well established.
D)too many buyers and sellers exist in the same market.

Question

Quizplus · Accepted Answer

When property rights are not well established, markets fail to allocate resources efficiently because individuals or firms cannot negotiate or enforce agreements effectively, leading to externalities or overuse of resources.

Markets Fail to Allocate Resources Efficiently When