From the economist's perspective, "market failures" basically arise when:

A. the market system is unable to adapt to or to accommodate change.
B. the quantity demanded for a good or service is greater than the quantity supplied of the good or service.
C. demand and supply do not accurately reflect all the benefits and all the costs of production.
D. the quantity supplied of a good or service is greater than the quantity demanded for a good or service.


Answer: C

Economics

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