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Market Failure Is Where The Free Market

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Market Failure Is Where The Free Market
Market failure is where the free market mechanism fails to achieve economic efficiency.
Allocative efficiency is where consumer satisfaction is maximized. Scarce resources are used to produce those goods and services that consumers actually demand.
Productive efficiency is where production takes place using the least amount of scarce resources.
Economic efficiency is where both allocative efficiency and productive efficiency are achieved.
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