To correct a market failure, society typically relies on
A) the market to correct itself
B) individual producers' cost-minimization procedures
C) the industry policing itself
D) the government to either tax, subsidize, or control output directly
E) price to reach equilibrium

Question

Quizplus · Accepted Answer

Market failures often require government intervention through taxes, subsidies, or direct control of output to correct inefficiencies and achieve a more optimal allocation of resources.

To Correct a Market Failure, Society Typically Relies on