IMPORTANT: RECAP of Market Failures Flashcards by Ayan Rahman | Brainscape

Q

Properties of a Market

A

buyers + sellers
homogenous product
sellers = price takers
perfect information
consumer sovereignty
utility maximising
ease of entry and exit

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Q

Has a market formed??

A

Yes:

asymmetric information
factor immobility
externalities

No:

public goods
tragedy of the commons –> free rider problem

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Q

Efficiencies violations

A

Allocative
Productive
Dynamic
Technical

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