Asked by

Denise Norris
on Nov 05, 2024

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Which one of the following is not a source of market failure?

A) externalities
B) public goods
C) imperfect information
D) price increases

Market Failure

A circumstance where the distribution of goods and services through an unregulated market fails to be efficient, frequently resulting in a decrease in overall social welfare.

Externalities

Expenses or advantages impacting individuals who did not decide to bear those expenses or advantages.

Public Goods

Goods or services that are available to all members of a society, typically provided by the government, with no one excluded from benefitting.

  • Identify the sources of market failure, including externalities, public goods, and imperfect information.
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Thaina Petit-FrereNov 12, 2024
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