Question

When does market failure occur?

a.
when a company goes bankrupt
c.
when the money supply increases at a faster pace than output
b.
when the amount of public goods are less than the amount required
d.
when goods are not fairly distributed

Answer 1

Market failure occurs when individuals acting in rational self-interest produce a less than optimal or economically inefficient outcome. Market failure can occur in explicit markets where goods and services are bought and sold outright, which we think of as typical markets.

Step-by-step explanation: