The private market fails to correct for the positive externalities associated with basic research.

Name: The private market fails to correct for the positive externalities associated with basic research.
Brand: Quizplus
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Question

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Private market incentives are typically driven by profits and immediate returns on investment, which may not fully capture the long-term benefits and externalities associated with basic research. As a result, the private sector may underinvest in basic research, leading to a market failure.

The Private Market Fails to Correct for the Positive Externalities