Market Failure and the Government

Updated: 10/3/2021
Market Failure and the Government

Storyboard Text

  • FIVE CAUSES OF MARKET FAILURES
  • 1. Not enough competition
  • This is too expensive! But there is no other company to offer a better price. I guess I'll just stop buying this product.
  • $199,99
  • I had no idea this type of beverage was so bad for my health! Now that I know I'll never buy it again.
  • 2. Not enough Information
  • I can't move this peace of land to another state. I guess I'll have to move and start another business.
  • 3. Resources That Can’t, or Won’t, Move
  • The company that was responsible for this bridge didn't fix it properly, so I think the government must fire the company and finish the job, although it may cost a lot of money.
  • 4. Too Few Public Goods
  • This factory causes too much pollution, people should stop buying from this company.
  • 5. Externalities or Spillover Effects