Market Failure

Discuss the various situations of ‘market failure’ leading to environmental degradation.

Leave a Comment / MECE-104 /

Introduction Market failure is a situation in which the free market does not allocate resources efficiently, leading to negative outcomes for society. One of the most visible and harmful outcomes of market failure is environmental degradation. Environmental resources like air, water, and forests are often treated as free goods, resulting in their overuse and pollution. […]

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What do you mean by the term “market failure”? Give an account of the factors causing market failure? What kind of state intervention is required to address the problems associated with Monopoly Power?

Leave a Comment / MEC-106 /

Introduction Market failure occurs when the free market, operating on its own, does not allocate resources efficiently, leading to a net loss in social welfare. It indicates a situation where individual decisions driven by self-interest fail to result in socially desirable outcomes. One of the major forms of market failure is monopoly power, where a

What do you mean by the term “market failure”? Give an account of the factors causing market failure? What kind of state intervention is required to address the problems associated with Monopoly Power? Read More »

What are the policy instruments available for government intervention to regulate inefficient market situations?

Leave a Comment / BECC-101 /

Introduction Markets are generally efficient in allocating resources through the forces of supply and demand. However, in some cases, markets fail to deliver socially desirable outcomes. These failures occur due to reasons like externalities, monopoly power, public goods, or information asymmetry. In such situations, government intervention becomes necessary. This answer explains the key policy instruments

What are the policy instruments available for government intervention to regulate inefficient market situations? Read More »

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