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Market Failutes
Storyboard-Text
- Here are the five causes of market failures!
- I own the only store in town, so I can sell whatever I want for any price I want because I have no competition.
- How am I supposed to buy this laptop when they don't provide any information about it?
- Market Failures
- Our automobile factory is shutting down due to lack of funds and now thousands of us are without jobs!!
- Not Enough CompetitionThe government could create incentives that persuade entrepreneurs and businesses to move to the areas that have little or no competition. They need to persuade producers to move to the area.
- This highway's quality is terrible! This needs to be fixed or someone could be hurt!
- Not Enough InformationThe government could create and enforce rules that require businesses to give consumers important and crucial information relating to their products.
- They built this airport right by my house and the constant noise makes it hard to concentrate and sleep in my own home.
- Resources Can't/Won't MoveThe government could enforce taxes on entrepreneurs trying to move away or could financially help entrepreneurs who are struggling to keep their businesses up and running.
- Too Few Public GoodsThe government could allocate a specific budget that would cover the creation and/or repair of public goods in the most cost-efficient manner without losing quality of said public goods.
- Externalities/Spillover EffectThe government could regulate where businesses build their institutions and/or have added taxes that will deter businesses from harming the area/people (i.e for institutions that emit pollution)
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