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Explain the Concept of Market Failure

question 47

Essay

Explain the concept of market failure.


Definitions:

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.

Legal Services

Professional services provided by lawyers or legal practitioners related to the law, including advice, representation, and the preparation of legal documents.

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