Ask Question
18 November, 16:24

Market failure occurs when the pursuit of self-interest leads to bad results for society. False True

+3
Answers (1)
  1. 18 November, 17:10
    0
    This statement is true.

    Explanation:

    A market economy can be defined as an economic system in which economic decisions is taken by the market forces. The equilibrium prices and quantity are determined by the forces of demand and supply.

    Market failure happens when these forces fail to efficiently allocate goods and services in the market.

    The market fails to efficiently allocate goods and resources when the individual rational decisions in self-interest lead to inefficient outcomes for society.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Market failure occurs when the pursuit of self-interest leads to bad results for society. False True ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers