A market failure associated with drugs that is caused because the true costs and benefits associated with the drug is not known is

Question

Quizplus · Accepted Answer

Imperfect information occurs when buyers and/or sellers do not have access to full information about the true costs and benefits associated with a product or service. In the case of drugs, if the true costs and benefits (including potential side effects and long-term health consequences) are not fully known, consumers may not make informed decisions about whether to use the drug, leading to market failure.

A Market Failure Associated with Drugs That Is Caused Because