Which of the following does not cause competitive market failure?

Question

Quizplus · Accepted Answer

The cost disease, or Baumol's cost disease, refers to the rising costs in labor-intensive industries due to wage increases in other sectors. It does not inherently cause market failure in competitive markets, unlike detrimental externalities, beneficial externalities, and poorly defined property rights, which can lead to inefficiencies and failures in market outcomes.

Which of the Following Does Not Cause Competitive Market Failure