All economists agree that to justify that market failure has occurred, it is sufficient to have the market choose an inferior product over a superior product.

Question

Quizplus · Accepted Answer

Economists do not universally agree that the market choosing an inferior product over a superior one is sufficient to justify market failure. Market failure is typically identified through specific criteria such as externalities, public goods, market power, and information asymmetries, rather than subjective assessments of product superiority.

All Economists Agree That to Justify That Market Failure Has