Which of the following is not a cause of market failure?
A) Incomplete information
B) Externalities
C) Individuals acting according to their own self-interest
D) Public goods

Question

Quizplus · Accepted Answer

Individuals acting according to their own self-interest is not a cause of market failure, as it is a fundamental principle of the market mechanism. Market failure occurs when the self-interest of individuals in a market leads to an inefficient allocation of resources or failure to provide certain goods and services, such as public goods or addressing negative externalities. Incomplete information and externalities are well-known causes of market failure, and public goods are typically underprovided by the market due to their non-excludable nature.

Which of the Following Is Not a Cause of Market