A market failure could be caused by
A) competition.
B) imperfect information.
C) profit.
D) capitalism.

Question

Quizplus · Accepted Answer

Market failure often occurs when there is imperfect information in the market. This means that the buyers and sellers do not have access to all the necessary information about the goods or services being traded, leading to inefficient outcomes. Competition, profit, and capitalism are not necessarily causes of market failure, as they can promote efficiency and innovation in the market.

A Market Failure Could Be Caused by