When the market fails to adjust for the full costs of a firm's behavior,this is called:

Question

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Market failure occurs when the market cannot efficiently allocate resources and fails to fully account for the costs or benefits of a transaction. This can result in negative externalities, such as pollution or resource depletion, that are not reflected in the market price. Deregulation and re-regulation refer to changes in government regulations, but do not necessarily address the issue of market failure.

When the Market Fails to Adjust for the Full Costs