Economics Notes on Market Failure and Externalities

0 ratings18 downloads

This note gives a description of the occurrence of market failure while the price mechanism in the market fails efficient resource allocation.


Additional information

The present note describes a situation referred to as market failure where the market fails to allocate resources on its own in an efficient manner so as to bring a balance between social benefits and costs. The note also focuses on the reasons behind market failure and regards externalities to be one such reason.


0 Ratings

Average rating:

Share: