Market Failure + Externalities

Beschreibung

A Levels Economics (Unit 1 - Microeconomics) Mindmap am Market Failure + Externalities, erstellt von christian525 am 09/04/2014.
christian525
Mindmap von christian525, aktualisiert more than 1 year ago
christian525
Erstellt von christian525 vor etwa 10 Jahre
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Zusammenfassung der Ressource

Market Failure + Externalities
  1. Complete
    1. missing markets
    2. Partial
      1. produces wrong quantity
        1. wrong pricing
        2. Causes of Market Failure
          1. neg. externality
            1. MSC exceeds MPC
            2. pos. externalities
              1. MSB exceeds MPB
              2. Imperfect information
                1. merit goods underproduced
                  1. demerit goods over-produced
                  2. market dominance by monopoly
                    1. leads to under-production and high prices
                    2. Factor immobility
                      1. causes unemployment
                        1. lower productive efficiency
                      2. Externalities
                        1. third party effects
                          1. occur outside market

                            Anmerkungen:

                            • i.e. people not directly involved in production or consumption
                            1. Positive
                              1. MSB > MPB
                                1. good underproduced
                                2. Negative
                                  1. MSC > MPC
                                    1. leads to overproduction
                                    2. smoking
                                      1. litter
                                        1. food waste
                                          1. pollution
                                            1. impact on health
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