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Market Failure Free essay! Download now

Home > GCSE > Business studies > Market Failure

Market Failure

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Downloads to date: N/A | Words: 350 | Submitted: 25-Feb-2008
Spelling accuracy: N/A | Number of pages: | Filetype: Word .doc

Description

What is market failure and why does it happen?

Preview

Market Failure occurs when a free market fail to provide us with the best outcome in terms of efficiency. Firms do not allocate their resources efficiently.

Roots Of Market Failure:

• Lack of competition
• Externalities in production and consumption
• Immobility of factors of production
• Information Failure
• Poverty and inequality in an economy
...

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