Question

Market failure is the inability of a. a market to establish an equilibrium price. b. buyers to interact harmoniously with sellers in the market. c. buyers to place a value on the good or service. d. some unregulated markets to allocate resources efficiently.

Answer 1

Answer:

D. some unregulated markets to allocate resources efficiently.

Explanation:

Market failure can simply be defined as the inefficient distribution of goods and services in the market.

This inefficient distribution of goods and services in the market leads to a loss of economic value.

There are some types of market failure. They include public goods, market control, externalities, and imperfect information. These types of market failure are divide into 2 major parts namely Complete market failure and partial market failure.

In complete market failure, there is no supply of goods to the market at all while partial market failure refers to the inadequate supply of goods to the market.

Also, there are some causes of market failure which include monopoly, externalities, public goods, incorrect/under dissemination of information pertaining to distribution.

Cheers.