5 Questions
What is market failure?
The inability of a market to allocate resources that best satisfies the wants of society
What is a characteristic of competitive markets?
They usually produce an assignment of resources that is 'right' from an economic perspective
What are the categories into which market failures in competitive markets fall?
Demand-side and supply-side
What is a reason why market failures can occur in competitive markets?
Presence of informational problems
What is the focus of the chapter related to market failures in competitive markets?
To explain how and why market failures can arise and how they might be corrected
Test your knowledge of market failures in competitive markets with this quiz. Explore concepts such as price, quantity, and efficiency, and understand the causes and implications of market failures.
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