One common source of market failure is
A) perfect competition.
B) pollution.
C) perfect information.
D) private goods.

Question

Quizplus · Accepted Answer

Pollution is a common source of market failure because it allows private firms to impose costs on society without compensating those affected. This results in an inefficient allocation of resources and a suboptimal outcome for society as a whole. Perfect competition, perfect information, and private goods are not inherently sources of market failure.

One Common Source of Market Failure Is