When the allocation of resources is such that a different allocation would increase society's welfare, economists say:
A) market failure has occurred.
B) the efficiency condition is met.
C) decision makers have faced the full marginal benefits and marginal costs of their decisions.
D) producers have maximized total cost.

Question

Quizplus · Accepted Answer

Market failure occurs when resources are not allocated efficiently, meaning that a different allocation could improve society's welfare.

When the Allocation of Resources Is Such That a Different