Wednesday, January 16th 2019

Market Failure

Market Failure Meaning:
Where a market fails to function in the most ‘efficient’ way possible: that is, where there exists another way for it to function that would result in more overall utility for the participants.

Market Failure Example:
Without lighthouses, ships run the risk of running aground. A lighthouse is far more valuable to a ship than the cost involved in having to pay a little money towards building one. If ship owners did not come together to build and operate lighthouses, resulting in no lighthouses and considerable danger to ships, then this would be an example of market failure.
Give Your Opinion
Where to buy luxury houses in Phoenix?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Where to buy luxury houses in Phoenix?
Financial Questions & Answers
Ask A Question
Get opinions on what you want to know:
Specific to any country?