A market failure exists when the production or use of goods and services by the market is not efficient.
GOVERNMENT INTERVENTION
Government intervene to correct for the problems created by market failure and to improve efficiency
-Pollution taxes
-Policies to introduce competition into markets
-Price controls
ETHEL :)
Subscribe to:
Post Comments (Atom)
Would you care to categorise the government interventions into the broad groups?
ReplyDelete-Ms Chen