Match each source of market failure with the correct response. All matches must be correct to...

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Match each source of market failure with the correct response. All matches must be correct to earn credit. Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE Externalities The free market equilibrium output is above or below the socially efficient level of output when there are spillover costs or benefits. Asymmetric Information Sellers are able to earn higher profits by restricting output and raising product prices when they have market power. Public Goods Choices may be inefficient if based on incomplete or inaccurate information. Imperfect competition The free market cannot efficiently provide goods that are non-excludable due to the free-rider problem. Match each source of market failure with the correct response. All matches must be correct to earn credit. Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE Externalities The free market equilibrium output is above or below the socially efficient level of output when there are spillover costs or benefits. Asymmetric Information Sellers are able to earn higher profits by restricting output and raising product prices when they have market power. Public Goods Choices may be inefficient if based on incomplete or inaccurate information. Imperfect competition The free market cannot efficiently provide goods that are non-excludable due to the free-rider problem.