The best remedy for market failure is often
A)a market-based solution.
B)shutdown of the market.
C)no government intervention.
D)externalizing the externalities.

Question

Quizplus · Accepted Answer

A market-based solution, such as introducing regulations or creating incentives, can correct the inefficiencies that led to market failure. This solution allows the market to continue to function while addressing the problem. Shutdown of the market or no government intervention may exacerbate the problem, while externalizing the externalities does not directly address the underlying issue causing market failure.

The Best Remedy for Market Failure Is Often