Market mechanisms are unlikely to provide

Name: Market mechanisms are unlikely to provide
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

Market mechanisms work efficiently for rival goods, where demand and supply can be easily determined through prices. However, nonrival goods, such as public goods or common resources, do not work efficiently through market mechanisms, as there is no direct way to price them or allocate them efficiently. Therefore, the provision of nonrival goods through market mechanisms is unlikely.

Market Mechanisms Are Unlikely to Provide