What is market failure
A)the inability of buyers to interact legally with sellers in the market
B)the inability of a market to establish an equilibrium price
C)the inability of buyers to place a value on the good or service
D)the inability of some unregulated markets to allocate resources efficiently

Question

Quizplus · Accepted Answer

Market failure refers to situations where the market mechanism fails to allocate resources efficiently. This can happen when there is imperfect competition, externalities, public goods, information asymmetry, and other factors that negatively affect the allocation of resources. In such cases, government intervention is needed to correct the market failure and improve economic efficiency.

What Is Market Failure