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consider a logging company which clear cuts all of the forests it owns so that it can increase its sales. on the land where the trees once stood there is erosion which flows into streams killing all the fish. the logging firm is seen as contributing to market failure. why?

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rafikiedu08

Erosion on the area where the trees once were is killing all the fish in the streams by flowing into them. The logging company is considered to be a part of the market failure.

When products and services are distributed inefficiently in the free market, this is referred to as market failure in economics. A market that functions optimally has forces of supply and demand that are counterbalanced, with a change in one side of the equation causing a change in price that preserves the market's equilibrium. However, something disrupts this balance in a market failure.

The individual incentives for rational behaviour do not result in rational outcomes for the group when markets fail. To put it another way, each person makes the best choice for herself, but the group as a whole suffers as a result.

To know more about Market failure visit:

https://brainly.com/question/18958169

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