of "market failure," occurs when

Question

Quizplus · Accepted Answer

Market failure occurs when the market does not allocate resources efficiently, leading to suboptimal or undesirable outcomes. This can occur due to externalities (costs or benefits not reflected in market prices), public goods (goods that are non-excludable and non-rivalrous), monopoly power, information asymmetry, or other market distortions. A market failure does not necessarily mean there is a shortage or surplus, nor does it mean that the market fails to reach equilibrium.

Of "Market Failure," Occurs When