Market Failure
Market inefficiency; not producing socially optimal outcome.
Real World
Facebook (Meta) was fined £500,000 by the UK ICO over the Cambridge Analytica scandal — a case of information asymmetry where users didn't understand how their data was being used, prompting regulatory intervention.
Exam Focus
Name the specific type of market failure (e.g. negative externality, information asymmetry) before explaining it — this signals precise knowledge to examiners.
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