Market Failure and the Government
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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.
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