Market failure economics revision notes.
Market failure occurs whenever markets fail to deliver an efficient allocation of resources and the result is a loss of economic and social welfare.
Market failure exists when the competitive outcome of markets is not satisfactory from the point of view of society. What is satisfactory nearly always involves value judgments.
Complete and partial market failure
Complete market failure occurs when the market simply does not supply products at all - we see “missing markets” Partial market failure occurs when the market does actually function but it produces either the wrong quantity of a product or at the wrong price.
All wiki articles on: Market failure
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