A "market failure" occurs when:
✓ Correct Answer: Option B
Market failure is when the free market fails to allocate resources efficiently, leading to deadweight loss (e.g., externalities, public goods).
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This 2-level IB Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.
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