Which of the following is NOT a source of market failure?
A)side effects of externalities
B)irrational decisions
C)government regulations that impede market forces
D)lack of market power

Question

Quizplus · Accepted Answer

Lack of market power refers to a situation where no individual or group has enough market power to influence market outcomes. This is not a source of market failure as it does not disrupt the efficient functioning of the market. A lack of market power can actually lead to competitive market outcomes and efficiency. The other options, A, B, and C are all sources of market failure as they disrupt the efficient allocation of resources in the market.

Which of the Following Is NOT a Source of Market