Inadequate information about buyers can cause a market failure in the form of an

Question

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Inadequate information about buyers can lead to an underallocation of resources to the provision of the product, as sellers may underestimate the demand for the product and produce less than what would be optimal for the market. This can result in a market failure, as the market is not functioning efficiently and resources are not being allocated effectively. The other options (A, B, D, and E) are not directly related to inadequate information about buyers and do not necessarily reflect a market failure.

Inadequate Information About Buyers Can Cause a Market Failure in the Form