Market failures are less likely to occur whenever
A)private returns are greater than social returns.
B)social returns are greater than private returns.
C)the free market produces less than what is socially optimal.
D)new firms can easily attract start-up capital.

Question

Quizplus · Accepted Answer

Market failures are less likely to occur when new firms can easily attract start-up capital because it indicates a competitive market environment where resources can be efficiently allocated to innovative and productive ventures.

Market Failures Are Less Likely to Occur Whenever