To the extent that there is market failure in an economy, the economy will be operating at a point inside its production possibilities curve.

Name: To the extent that there is market failure in an economy, the economy will be operating at a point inside its production possibilities curve.
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Market failure can lead to inefficient allocation of resources, causing the economy to produce less than its potential output, which is represented by a point inside the production possibilities curve.

To the Extent That There Is Market Failure in an Economy