A market outcome that is optimal given existing constraints in the market but worse than the outcome that would result if those constraints were removed is called the

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The term for this type of outcome is the second-best result. It refers to a situation where the market is not able to achieve the most efficient or optimal outcome due to constraints such as externalities, market power, or imperfect information. In such cases, the second-best outcome is the best possible outcome given the constraints. This is because removing one constraint may create other inefficiencies or result in even less desirable outcomes. Therefore, the second-best outcome is considered the most realistic and practical solution in such cases.

A Market Outcome That Is Optimal Given Existing Constraints in the Market