What are the causes of market failure?

Answer

The causes of market failure include a lack of advertising or advertising that is directed toward a market that is not within the optimal buyer's market. Market failure is not generally caused by a product that is inadequate or poorly designed, but rather by a marketing effort that is substandard or pointed in a wrong direction. Market failure can also be caused by fluctuations in the economy including a depression or recession. Other factors that influence market failure include bad branding and misallocated resources.
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