All of the following are sources of market failure except

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services is not efficient, often leading to a net social welfare loss. Competitive markets, by definition, tend to allocate resources efficiently through the forces of supply and demand, leading to an optimal distribution of goods and services. Therefore, they are not considered a source of market failure. In contrast, monopoly power, inadequate information, and economic inequality can all lead to inefficiencies in the distribution of resources, making them sources of market failure.

All of the Following Are Sources of Market Failure Except