What is market failure?
A
Misallocation of income by the government, causing profits to differ from the socially optimal level.
B
Shortage of resources caused by consumers, causing output to differ from the privately optimal level.
C
Misallocation of resources by the free market, causing output to differ from the socially optimal level.
D
Efficient allocation of resources by the free market, causing output to equal the socially optimal level.
7.3.5 definition of market failure Flashcards
22 flashcards on CIE Intl A Level Economics 7.3.5 definition of market failure: the key terms and definitions you need to recall.