Examlex
A leveraged buyout is the purchase of a company financed primarily by debt. This is a term commonly applied to a firm going private financed primarily by debt.
Market Failure
A scenario where the free market fails to allocate resources efficiently, resulting in negative impacts on social welfare.
Pareto Optimality
The scenario in which resources are allocated in a manner that prohibits enhancing one individual's situation without negatively impacting another's.
Lost Surplus
Refers to the reduction in the combined consumer and producer surplus, often caused by inefficiencies in a market, such as taxes, tariffs, or other forms of market intervention.
Market Failure
A situation in which market forces, such as supply and demand, fail to allocate resources efficiently, often justifying government intervention.
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