Market failure as a result of several reasons. Many of the reason are: monopoly power, negative externalities, missing market and De-merit goods. However, the most common causes are productive allocative inefficacy, which is causes when markets fail to allocate or produce resources in the most efficient way. Another cause of market failure is unemployment. Unemployment is perhaps the most recognized reason for market failure. Unemployment plays such a major role in market failure due to the periods of high unemployment of machine as well as people cause a shortage in consumer spending resulting in a lack of spending power. This in turn cause a drop in the market and economy. These are just a few of the reasons our economy faces market failures. Ultimately market failures occur when to little or too much of our services and goods are produced then consumed by our economy. As a result of market failure due to many of the causes listed, our economy often requires government intervention. Government intervention is required to get the economy back on track and help the market recover from the loss and or
Market failure as a result of several reasons. Many of the reason are: monopoly power, negative externalities, missing market and De-merit goods. However, the most common causes are productive allocative inefficacy, which is causes when markets fail to allocate or produce resources in the most efficient way. Another cause of market failure is unemployment. Unemployment is perhaps the most recognized reason for market failure. Unemployment plays such a major role in market failure due to the periods of high unemployment of machine as well as people cause a shortage in consumer spending resulting in a lack of spending power. This in turn cause a drop in the market and economy. These are just a few of the reasons our economy faces market failures. Ultimately market failures occur when to little or too much of our services and goods are produced then consumed by our economy. As a result of market failure due to many of the causes listed, our economy often requires government intervention. Government intervention is required to get the economy back on track and help the market recover from the loss and or