ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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buyers to interact harmoniously with sellers in the market.
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a market to establish an equilibrium price.
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buyers to place a value on the good or service.
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some unregulated markets to allocate resources efficiently.
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Detailed explanation-1: -The failure of private decisions in the marketplace to achieve an efficient allocation of scarce resources is called market failure. Markets will not generate an efficient allocation of resources if they are not competitive or if property rights are not well defined and fully transferable.
Detailed explanation-2: -What is market failure? It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost. causes society to suffer. what is partial market failure.
Detailed explanation-3: -In either case market failures generate productive and/or allocative inefficiency. This means that the market system has failed to deliver on what its advocates claim it does best… fully allocate resources efficiently.
Detailed explanation-4: -Market failure refers to the inefficient distribution of goods and services in the free market. In a typical free market, the prices of goods and services are determined by the forces of supply and demand, and any change in one of the forces results in a price change and a corresponding change in the other force.