Mind map
Market Failure
Map content
Market Failure
Efficiency
- Maximising economic welfare
- Market efficiency
- Achieved by allocating resources so that society maximises net benefits
- Measured by total surplus
- Achieved by allocating resources so that society maximises net benefits
Economic Problem
- Resources are scarce and therefore must be used in best possible way rather then wasted
- Issue of relative scarcity
- Economic Scarcity
- Price reflects this
- changes in price
- Provide incentives to consumers and producers to make decisions
- changes in price
- Price reflects this
- Resources are scarce and therefore must be used in best possible way rather then wasted
Information
- Description
- econs Mind Map on Market Failure, created by lucygs on 07/05/2013.
- Created by
- lucygs · May 2013
- Updated
- Feb 19, 2016
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- 34
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