Question

The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. This is an example of___________________.

Answer 1

Answer:

Market failure

Explanation:

Market failure is the economic situation where goods and services are not evenly spread out on the market.

In question resources (location) is in favour of New Monopoly seaport and shipsbare forced to wait and enter the port.

Ideally, in a free market resources are to be efficiently distributed so that people do not have to go to only one place to get a good or service.

It is similar to a monopoly in the free market.