A common theme among examples of market failure is that:
A)the good being provided always harms society in some systematic way
B)some item of value does not have an owner with the legal authority to control it
C)cost-benefit analysis is likely to lead to implementation policies that promote private provision of goods and services
D)there are regulations that prohibit the efficient functioning of private markets

Question

Quizplus · Accepted Answer

Market failure occurs when the market does not allocate resources efficiently, resulting in an inefficient use of resources. One common reason for market failure is the presence of goods or resources that do not have an owner with the legal authority to control it, such as common resources like air, water, and fisheries. When resources are not privately owned, it is difficult to prevent overuse and depletion, resulting in market failure.

A Common Theme Among Examples of Market Failure Is That