Market failure occurs whenever the market mechanism leads to an inefficient or inequitable allocation of resources. This means that the wrong products are produced or they are produced in an inefficient manner.
Markets may fail for a variety of reasons including a lack of information on the part of consumers or producers, because of the existence of barriers to entry or because of the existence of externalities.
Examples of market failure include the existence of monopolies, the failure to provide public goods, the under provision of merit goods and an unequal distribution of income and wealth.
marlinbito answered the question on July 5, 2018 at 10:05
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Explain some of the factors which could cause a rightward shift in a country’s production possibility curve.
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Explain some of the factors which could cause a rightward shift in a country’s production possibility curve.
Date posted:
July 5, 2018
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July 5, 2018
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July 5, 2018
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July 5, 2018
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July 5, 2018
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Explain some of the ways in which businesses may use and misuse the environment.
Date posted:
July 5, 2018
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Date posted:
July 5, 2018
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Explain the relationship between a firm’s short run and long run average cost curves.
Date posted:
July 5, 2018
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Date posted:
July 5, 2018
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Date posted:
July 5, 2018
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Evaluate the view that the government’s top priority should be to achieve a more equitable distribution of income
Date posted:
July 5, 2018
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(Solved)
Outline the main macroeconomic policy objectives of a government.
Date posted:
July 5, 2018
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Answers (1)
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(Solved)
Critically examine the view that only monetary policy can control an economy’s rate of inflation.
Date posted:
July 5, 2018
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Answers (1)
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(Solved)
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Date posted:
July 5, 2018
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Answers (1)
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(Solved)
Critically examine the view that contestable markets lead to a more efficient allocation of resources than any other market structure
Date posted:
July 5, 2018
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Answers (1)
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(Solved)
Critically examine the view that the advantages associated with large scale production mean that small firms will become a thing of the past.
Date posted:
July 5, 2018
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Answers (1)
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(Solved)
Explain why firms often strive to produce on a larger scale.
Date posted:
July 4, 2018
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(Solved)
Critically examine the policies which governments could adopt in order to shift the long run aggregate supply curve (LRAS) to the right.
Date posted:
July 4, 2018
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Answers (1)
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(Solved)
Explain what is shown by an economy’s short run aggregate supply curve.
Date posted:
July 4, 2018
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Answers (1)
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(Solved)
Evaluate the main policies which governments could use to reduce wage inequality.
Date posted:
July 4, 2018
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Answers (1)