When markets fail to allocate resources efficiently, the ultimate source of the problem is usually

Question

Quizplus · Accepted Answer

When markets fail to allocate resources efficiently, it is usually because property rights have not been well established. This means that individuals or firms do not have clear ownership or control over resources, leading to misallocation and inefficient use. Government regulation, prices being too high or low, and overconsumption or overproduction may be contributing factors, but they are not the ultimate source of the problem.

When Markets Fail to Allocate Resources Efficiently, the Ultimate Source