In economic theory, a fundamental distinction is made between complete and partial market failure. Which of the following scenarios describes a complete market failure?
The under-provision of primary healthcare services in a rural area because low-income consumers cannot afford to pay the market-clearing price.
A private firm refuses to build a coastal flood defence barrier because it is impossible to exclude non-paying residents from benefiting from it.
A monopoly supplier of domestic water charging prices where price (PPP) exceeds marginal cost (MCMCMC), resulting in allocative inefficiency.
A state-funded regulatory agency setting a maximum price for rental housing below the market equilibrium, causing a chronic shortage of properties.
