What is a market failure?

[ssal]

What is a market failure?

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It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.

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It refers to a breakdown in a market economy because of widespread corruption in government.

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It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost.

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It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event.

[cloudre37]

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[ssal]

TYSM

[jackie]

Thanks for the timely response, appreciate it