When Resources Are Misallocated, or Allocated Inefficiently

question 104

Multiple Choice

When resources are misallocated, or allocated inefficiently,

• A) market failure occurs.
• B) then there must be external costs or benefits in production.
• C) then it must be the case that there is imperfect information in the market.
• D) then it must be the case that the good is a public good.

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