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Paper 2Structured Questions1 marks
Market failure can occur in various forms, affecting the efficiency of resource allocation.
Description
Understanding Market Failure
Market failure occurs when the allocation of goods and services by a free market is not efficient. Key concepts include public goods, merit goods, demerit goods, social benefits, external benefits, private benefits, social costs, external costs, and private costs.
- a[1]
State one reason why market failure occurs
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