Asked by
Chase Hickey
on Oct 26, 2024
Verified
When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say:
A) market failure has occurred.
B) the efficiency condition is met.
C) decision makers have faced the full marginal benefits and marginal costs of their decisions.
D) producers have maximized total cost.
Market Failure
Occurs when the allocation of goods and services by a free market is not efficient.
- Apprehend the process by which private markets addressing nonexcludable and nonrival goods contribute to market downfall.
- Analyze the role of government intervention in correcting market failures related to public goods and common resources.
Verified Answer
SR
Learning Objectives
- Apprehend the process by which private markets addressing nonexcludable and nonrival goods contribute to market downfall.
- Analyze the role of government intervention in correcting market failures related to public goods and common resources.
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