We say a market is "missing" when:
A) there is no place for potential buyers and sellers to exchange a particular good or service.
B) the quantity being exchanged is at or close to zero.
C) there is an absence of a well-functioning market, and total surplus is lower than it could be.
D) All of these are correct.

Question

Quizplus · Accepted Answer

All of the given options are correct and contribute towards a market being considered missing. Choice A highlights the lack of a platform for exchange, Choice B suggests the nonexistence of a practical exchange, and Choice C signals that there is a void in the market that is limiting the potential of resource allocation.

We Say a Market Is "Missing" When