What is the term used to describe a situation in which markets fail to allocate resources efficiently?

Question

Quizplus · Accepted Answer

Market failure is the situation when markets are unable to allocate resources efficiently. This can occur due to factors like lack of competition, externalities, public goods, and information asymmetry. Market failure results in deadweight loss, where society could have been better off if resources were allocated efficiently. The other options, such as economic meltdown, corporate bankruptcy, and disequilibrium, do not fully capture the concept of inefficient resource allocation due to market failure.

What Is the Term Used to Describe a Situation in Which