Which one of the following is not a source of market failure?
A) externalities
B) public goods
C) imperfect information
D) price increases

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services by a free market is not efficient. Externalities, public goods, and imperfect information are all classic examples of market failure. Price increases, however, are not inherently a source of market failure; they can be a result of various factors including supply and demand dynamics, and do not necessarily indicate a failure in market efficiency.

Which One of the Following Is Not a Source of Market