From the 1.4 - Government
specification... Intervention
, Market failure is a situation
where the free market
mechanism does not lead to
Recap: an optimal/efficient allocation
of resources and the needs
Market and wants of societies are
not met. As a result, too much
Failure or too little of a product can be
produced, leading to a
net welfare loss (society is
worse off).
specification... Intervention
, Market failure is a situation
where the free market
mechanism does not lead to
Recap: an optimal/efficient allocation
of resources and the needs
Market and wants of societies are
not met. As a result, too much
Failure or too little of a product can be
produced, leading to a
net welfare loss (society is
worse off).
