The term market failure refers to

Are pecuniary externalities also an example of market failure? Answer : Externalities are called market failures because the market allocates resources without considering the costs and benefits of externalities. Since firms and individuals do not consider externalities when they make choices, the market fails to arrive at a socially efficient outcome. Pecuniary externalities are not market ... ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download