What is a common theme among examples of market failure
A)The good being provided always harms society in some systematic way.
B)Some item of value does not have an owner with the legal authority to control it.
C)Cost-benefit analysis is likely to lead to implementation policies that promote private provision of goods and services.
D)There are regulations that prohibit the efficient functioning of private markets.

Question

Quizplus · Accepted Answer

Market failure often occurs when there are externalities or public goods, which are situations where some item of value does not have an owner with the legal authority to control it, leading to inefficient allocation of resources.

What Is a Common Theme Among Examples of Market Failure