Mapa mental
Market Failure + Externalities
Mind map: market failure and externalities
Contenido del mapa
Market Failure + Externalities
Complete
- missing markets
Partial
- produces wrong quantity
- wrong pricing
Causes of Market Failure
- neg. externality
- MSC exceeds MPC
- pos. externalities
- MSB exceeds MPB
- Imperfect information
- merit goods underproduced
- demerit goods over-produced
- market dominance by monopoly
- leads to under-production and high prices
- Factor immobility
- causes unemployment
- lower productive efficiency
- neg. externality
Externalities
- third party effects
- occur outside market
- i.e. people not directly involved in production or consumption
- Positive
- MSB > MPB
- good underproduced
- Negative
- MSC > MPC
- leads to overproduction
- smoking
- litter
- food waste
- pollution
- impact on health
- MSC > MPC
Información
- Descripción
- A Levels (Unit 1 - Microeconomics) Economics Mapa Mental sobre Market Failure + Externalities, creado por christian525 el 09/04/2014.
- Creado por
- christian525
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