A market failure could be caused by:

Question

Quizplus · Accepted Answer

Imperfect information refers to situations where buyers and sellers in a market do not have access to the same information, or when information is too costly to acquire. This can lead to market failures such as adverse selection or moral hazard, where one party has more information than the other and can take advantage of it, resulting in inefficient outcomes. Capitalism, competition, and profit are not inherently causes of market failure, although they can contribute to it in certain circumstances.

A Market Failure Could Be Caused By