Market failure
A)does not occur in competitive markets.
B)sometimes can occur in competitive markets.
C)occurs only when markets underproduce.
D)occurs only when markets overproduce.

Question

Quizplus · Accepted Answer

Market failure can occur in competitive markets when the market outcome is not socially efficient, such as when there are externalities or public goods. While competitive markets are generally more efficient than monopolies or oligopolies, they are not immune to market failure.

Market Failure