1.3.1 Types Of Market Failure ✅ Flashcards by User 123 | Brainscape

Q

What is market failure?

A

When free market fails to allocate scare resources at the socially optimum level of output.

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Q

What are the three types of market failures?

A

externalities.
information gaps.
Public goods.

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Q

What is partial market failure?

A

Not enough or too much of a good is produced.

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