Market failures

Looge oma Kopeeri

Not enough competition and not enough information.
Let's spend our resources more carefully.
We could invest on cars.
Why would we do that? We have no competitors, we don't need to do that.
We don't know if cars is a great investment, we don't have that information.
Resources that can't, or won't, move and too few public goods.
We need to fire some workers.
We also need to make a hospital to help people.
I don't think so, because we won't earn money on that.
I know. With that, they will be unemployed and they won't move from here, so it is a problem.
Externalities and Spillover effects
Let's build an airport here, we could earn a lot of money, because people that lives near here could travel easier.
We can't do that, because people that lives hear could also get troubled because of the noise of the airplanes.

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