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Market failure: Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient. Col
by TruthElixirX 14y ago
Market failure:
Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient.
Colleges are not operating in a market system. They get money rationed to them by the government in various ways. Therefore it is not a market failure.
- yukoncornelius 14y agoYes, its government failure which is a more inefficient allocation of resources than would occur without the government intervention.
- TruthElixirX 14y agoYes, I agree. That was what I was trying to convey with my comments.