Market failure is a situation in which
A)the market does not provide the ideal or optimal amount of a particular good.
B)there are too many buyers but not enough sellers.
C)prices are too high for "average" people to buy necessities.
D)there is a question over the quality of a product for sale.

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. This typically happens when the market does not provide the ideal or optimal amount of a particular good, such as in cases of public goods, externalities, or monopolies.

Market Failure Is a Situation in Which