When market failure occurs,it often creates an economic:

Question

Quizplus · Accepted Answer

Market failure occurs when the market is unable to allocate resources efficiently, resulting in an inefficient allocation of resources. This creates a role for government intervention to correct the market failure and ensure that resources are allocated efficiently. Therefore, option B is the correct answer. Option A is not a direct outcome of market failure, although it may be a desired goal of government policy. Option C and D may be helpful in improving market efficiency, but they are not direct consequences of market failure.

When Market Failure Occurs,it Often Creates an Economic