Market failure results in

A) lost surplus.
B) no goods being produced.
C) Pareto efficiency.
D) economic collapse.

Lost Surplus

Refers to the reduction in the combined consumer and producer surplus, often caused by inefficiencies in a market, such as taxes, tariffs, or other forms of market intervention.

Market Failure

A situation in which market forces, such as supply and demand, fail to allocate resources efficiently, often justifying government intervention.

Pareto Efficiency

A situation where resources are distributed in such a way that improving the condition of any one individual or meeting a preference more fully would result in detriment to at least one other individual or preference.