The result of market failure is waste or lost surplus.

Name: The result of market failure is waste or lost surplus.
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Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss or waste. This can manifest as either lost surplus, including both consumer and producer surplus, or as externalities that are not accounted for in the market price.

The Result of Market Failure Is Waste or Lost Surplus