When property rights are not well established,
a. private goods become public goods.
b. markets fail to allocate resources efficiently.
c. the distribution of private goods is unfair.
d. government resources are used inefficiently.
AnswerThe correct option is: markets fail to allocate resources efficiently. The term market failure is referred to as a situation of the allocation of goods and services by a free market is not efficient. Market failures are often associated with information, non-competitive markets, externalities, or public goods.
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