A supply-side market failure occurs when supply curves do not reflect the full cost of producing a good or service.

Question

Quizplus · Accepted Answer

A supply-side market failure occurs when supply curves do not reflect the full cost of producing a good or service, leading to an inefficient allocation of resources and potential negative externalities. Examples include pollution, depletion of natural resources, and inadequate safety or health standards.

A Supply-Side Market Failure Occurs When Supply Curves Do Not