In a competitive market, a good is most likely to be provided at inefficient levels if

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If the good is depletable, it means that its supply is finite and can eventually be exhausted. In a competitive market, firms will try to maximize their profits by producing and selling as much of the good as possible. However, if the good is depletable, producing and selling too much of it will lead to exhaustion of the resource, which is not sustainable. Therefore, in the absence of regulation or incentives to preserve the resource, the market is likely to provide the good at inefficient levels. This is known as the tragedy of the commons, where individuals acting in their own self-interest can lead to a collective outcome that is suboptimal for everyone.

In a Competitive Market, a Good Is Most Likely to Be