In a market system,which of the following is a symptom of market failure?

Question

Quizplus · Accepted Answer

Air pollution is a negative externality and a symptom of market failure because market transactions do not take into account the social cost of producing or consuming goods, resulting in a welfare loss to society. The other options, competition, falling prices, and scarcity of resources, are natural outcomes of a market system and do not necessarily indicate market failure.

In a Market System,which of the Following Is a Symptom