Which of the following leads to market failure?

Question

Quizplus · Accepted Answer

Market power, also known as monopolies, leads to market failure as they are able to set high prices and restrict output without fear of competition. This leads to a misallocation of resources and an inefficient use of goods and services. Regulations and antitrust laws are put in place to prevent market power and government planning may also lead to market failure if it restricts competition and innovation.

Which of the Following Leads to Market Failure