All of the following qualify as market failure except:
A)imperfect competition.
B)externalities.
C)imperfect information.
D)pollution.
E)allocative efficiency.

Question

Quizplus · Accepted Answer

Allocative efficiency is not a market failure, but rather the ideal outcome of a perfectly functioning market. Market failure refers to situations where the market fails to allocate resources efficiently or fails to produce outcomes that are socially desirable. Imperfect competition, externalities, imperfect information, and pollution are all examples of market failures.

All of the Following Qualify as Market Failure Except