When do markets fail to allocate resources efficiently
A)when prices fluctuate
B)when those with the property rights abuse their privileges
C)when property rights are not well established
D)when the government refuses to intervene in private markets

Question

Quizplus · Accepted Answer

When property rights are not well established, markets fail to allocate resources efficiently because there is no clear ownership, leading to overuse or underuse of resources.

When Do Markets Fail to Allocate Resources Efficiently