If the market mechanism causes the economy to arrive at the wrong mix of output,there is:

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Quizplus · Accepted Answer

Market failure occurs when the market mechanism fails to allocate resources efficiently, leading to an inefficient mix of output. In this case, the market is unable to produce the optimal mix of goods and services because it does not take into account externalities, public goods, information asymmetry, or other market imperfections. Market failure is a well-known concept in economics and can lead to a variety of economic inefficiencies, including deadweight loss, inequality, and social injustice.

If the Market Mechanism Causes the Economy to Arrive at the Wrong